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Accounting Ratios — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyAccounting Ratios1 Mark
Question
Return on investment may be improved by ________.
  1. Increasing turnover
  2. Reducing expenses
  3. Increasing capital utilization
  4. All of the above
✓

Answer

  1. All of the above
Explanation:

Return on investment measures the gain or loss generated on an investment relative to the amount of money invested. It is usually expressed as percentage & is typically used for personal financial decisions, to compare company's profitability or to compare efficiency of different investments.

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