Question : Which of the following is the correct answer: A: Overall Profitability ratios are based on the investment. B: It is calculated by dividing capital employed by operating profit.
Option 1: Option A
Option 2: Option B
Option 3: Both of the above
Option 4: None of the above
Correct Answer: Both of the above
Solution : The term "return on investment" refers to the overall profitability ratio as well. It shows the rate of return on the total capital invested in the company. Other names for it include return on investment and return on capital employed. It is calculated by dividing operational profit by capital employed. Hence option 3 is the correct answer.
Question : Assertion (R): Profitability Ratios are the indicators of the profitability of the firm. Reason (R): Profitability Ratios, i.e., Gross Profit Ratio, Operating Ratio, Operating Profit Ratio, Net Profit Ratio, and Return on Investment Ratio help in assessing the
Question : What are the major sources of human capital in a country? A: Investment in education B: Investment in health
Question : Capital employed in a firm is calculated from the liabilities approach as follows:
Question : Which of the following statements are incorrect with respect to Return on capital employed?
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