Elyse wants to calculate her return on equity but has forgotten the formula.You tell her that return on equity equals
A)net income divided by owners equity.
B)owners equity divided by net income.
C)total assets divided by owners equity.
D)owners equity divided by total assets.

Question

Quizplus · Accepted Answer

Return on equity is calculated by dividing the net income by the owners equity. This ratio shows how efficiently the company is using its equity to generate profits.

Elyse Wants to Calculate Her Return on Equity but Has