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

Question

Quizplus · Accepted Answer

Return on equity is calculated by dividing net profits by total owner's equity.

Elyse Wants to Calculate Her Return on Equity but Has