To determine how well her business is doing,Darlene should monitor the return on her investment (equity)because it is a better measure of performance than
A)the return on assets ratio.
B)the current ratio.
C)the quick ratio.
D)the absolute dollar amount of income.

Question

Quizplus · Accepted Answer

The absolute dollar amount of income does not account for the size of the investment, whereas return on equity measures the efficiency of generating profit from shareholders' equity, providing a better performance metric.

To Determine How Well Her Business Is Doing,Darlene Should Monitor