Business Quiz Tmrw

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10 Terms

1
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Return on Sales

Shows how profitable a firm was for a specified period of time

2
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Inventory Turnover

Shows whether the average monthly inventory might be too large or small.

3
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Current Ratio

Shows whether a firm can meet its current debts comfortably.

4
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Return on Equity

Shows whether the owners are making a fair return on their investment.

5
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Return on Investment
Shows rate of return on the total money invested by owners and others in a firm.
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Return on Sales eq

Net Profit/Sales

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Inventory Turnover eq

cost of goods sold/average inventory

8
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Current Ratio eq

Current Assets/ Current Liabilities

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Return on Owner's Equity eq

Net Profit/ Owner's Equity

10
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Return on Investment eq

Net Profit/ Total Assets