ECONOMICS

COST ACCOUNTING

RESPONSIBILITY ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Calculate the Return on investment if the following data given:i) net profit:RM8, 000, 000ii) sales revenue:RM10, 000, 000iii) Capital turnover:0.2
A
1.6%
B
0.16%
C
16%
D
0.016%
Explanation: 

Detailed explanation-1: -You may calculate the return on investment using the formula: ROI = Net Profit / Cost of the investment * 100 If you are an investor, the ROI shows you the profitability of your investments. If you invest your money in mutual funds, the return on investment shows you the gain from your mutual fund schemes.

Detailed explanation-2: -The turnover ratio measures fund yearly trading activity. It is calculated by taking the lesser of purchases or sales, dividing that number by average monthly net assets. Securities with a maturity of less than a year are not considered.

Detailed explanation-3: -Capital Turnover = Total Sales / Shareholder’s Equity "Capital Employed = Total Assets-Current Liabilities” or “Capital Employed = Non-Current Assets + Working Capital."read more/net worth. read more, is the total amount of investment made by shareholders in the company till the date of calculation of the ratio.

There is 1 question to complete.