Asked by Suzanna Mondragon on Jun 13, 2024
Verified
Which of the following ratios increases when inventory is sold on account for a price equal to its original cost?
A) Current.
B) Quick.
C) Return on assets.
D) Return on equity.
Return on Equity
A measure of a corporation’s profitability that reveals how much profit a company generates with the money shareholders have invested.
Return on Assets
A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficiently a company uses its assets to generate profit.
Inventory Sold
The cost of goods that have been sold from the inventory over a specific period, which is used to calculate the cost of goods sold.
- Appraise the effect of certain transactions on financial ratios and the economic health of an enterprise.
Verified Answer
Learning Objectives
- Appraise the effect of certain transactions on financial ratios and the economic health of an enterprise.
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