True / False Questions
1.Return on investment (ROI) tells us how much earnings can be expected for the average invested dollar.
2.Most organizations try to achieve their goals by providing incentives to employees who use resources wisely.
3.Accounting systems do not offer any benefit to management in generating and focusing employee motivation.
4.Capital turnover is equal to sales divided by average invested capital.
5.Return on investment indicates the profitability that can be expected from one dollar of sales.
6.To increase return on sales, a manager could decrease cost of goods sold while increasing revenues.
7.Capital turnover can be improved by reducing invested capital while keeping sales constant.
8.The return on investment is calculated by multiplying the capital turnover by the return on sales.
9.Capital turnover is calculated by dividing operating income by average invested capital.
10.Operating earnings rather than net income is used to compute return on sales.