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Match the Following Terms with the Best Definition Given Below

Question 202

Matching

Match the following terms with the best definition given below.

Premises:

Responses:

Profit margin

Ratio of income from operations to sales

Rate of return on investments

Earned by profit centers.

Investment turnover

Income from operations minus minimum acceptable income from operations

Residual income

Ratio of sales to invested assets

Controllable revenues

Income from operations divided by invested assets

Premises:

Profit margin

Rate of return on investments

Investment turnover

Residual income

Controllable revenues

Responses:

Ratio of income from operations to sales

Earned by profit centers.

Income from operations minus minimum acceptable income from operations

Ratio of sales to invested assets

Income from operations divided by invested assets

Correct Answer:

Premises:

Responses:

Profit margin

Rate of return on investments

Investment turnover

Residual income

Controllable revenues

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