To determine how well her business is doing, Asanda 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 rand amount of income.

Question

Quizplus · Accepted Answer

The absolute rand amount of income does not account for the size of the investment, while return on equity (ROE) measures the efficiency of generating profits from shareholders' equity, providing a better performance metric.

To Determine How Well Her Business Is Doing, Asanda Should