Which of the following is not consistent with an increase in sales? O The change in equity will be positive O Costs increase O The use of more assets is necessary O EFN will always be positive O Debt may or may not increase
Which of the following is not consistent with an increase in sales? O The change in equity will be positive O Costs increase O The use of more assets is necessary O EFN will always be positive O Debt may or may not increase
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Transcribed Image Text:Which of the following is not consistent with an increase in sales?
The change in equity will be positive
O Costs increase
O The use of more assets is necessary
EFN will always be positive
O Debt may or may not increase
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