The ________ ratio measures the owner's rate of return on the investment in the business.
A)net profit-to-equity
B)net profit on sales
C)quick profit
D)net sales-to-working capital

Question

Quizplus · Accepted Answer

The net profit-to-equity ratio measures the profitability of the business by comparing the net profit to the owner's equity, which represents the owner's investment in the business. This ratio allows the owner to assess the return on their investment and determine whether the business is generating sufficient profits to justify the investment.

The ________ Ratio Measures the Owner's Rate of Return on the Investment