Day: December 10, 2021

Which statement correctly expresses the relationship between return on capital employed, net asset turnover and profit margin?

Select ONE answer:

1. net asset turnover = return on capital employed – profit margin
2. profit margin / net asset turnover = return on capital employed
3. profit margin + net asset turnover = return on capital employed
4. return on capital employed = net asset turnover x profit margin

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.