Which of the Following Is an Appropriate Computation for Return

question 45

Multiple Choice

Which of the following is an appropriate computation for return on investment?

• A) Sales divided by total assets
• B) Net income divided by total assets
• C) Net income divided by sales
• D) Sales divided by stockholders' equity

---

Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has its rights, privileges, and liabilities distinct from those of its members.

Legal Contracts

Binding agreements between two or more parties that are enforceable by law.