Accountıng Iı Deneme Sınavı Sorusu #1044321

________ is a measure of a corporation’s profitability that presents how much profit it generates with each item (TL) of shareholders’ equity.

Which of the following completes the sentence best?


Net income

Return on equity

Average shareholder's equity

Comprehensive income

Preferred dividend


Yanıt Açıklaması:

By some ratios, the relationship between shareholders’ equity items, their positions, results, and effects can be understood clearly. Thus the information on the financial statements can be used in some decision making processes.One of the ratios that is used for analysis is the Return on Equity (ROE). It measures a corporation’s profitability by presenting how much profit it generates with each item (TL) of shareholders’ equity. The correct answer is B.

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