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Book Cover
Financial and Managerial Accounting: The Basis for Business Decisions, 12/e
Jan R. Williams, University of Tennessee
Susan F. Haka, Michigan State University
Mark S. Bettner, Bucknell University
Robert F. Meigs
Rewarding Business Performance

True/False Quiz

Please answer all questions



1

ROI is the product of capital turnover and return on sales.
A)TRUE
B)FALSE
2

Capital turnover tells managers how sales are generating capital.
A)True
B)False
3

Return on sales tells managers how invested capital is generating sales dollars.
A)True
B)False
4

The economic value added formula can be applied to the total company as well as a division.
A)True
B)False








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