An accountant can calculate a return on sales ratio to determine how well the firm is using the money invested by the owners.

Question

Quizplus · Accepted Answer

The return on sales (ROS) ratio measures a company's operational efficiency and profitability by indicating how much profit a company makes on its sales revenue, not how well it is using the money invested by the owners. Return on investment (ROI) or return on equity (ROE) would be more appropriate for assessing the use of owners' investments.

An Accountant Can Calculate a Return on Sales Ratio to Determine