1. Which of the following formulae provides the correct ROE (Return on Equity)?

A. Net Income divided by the average Total Assets of the two consecutive Balance Sheets

B. Gross Profit divided by the average amount of stocks of the beginning & ending Balance Sheets

C. Net Revenue divided by the Total Assets of the Previous Balance Sheet

D. Net Income divided by the average Total Owners Equity of the beginning & ending Balance Sheets

2. Which of the following is the correct set of financial statement or statements used to calculate ROE?

A. Income Statement & Cash Flows Statement

B. Income Statement only

C. Income Statement & Balance Sheets

D. Balance Sheet only

3. Which of the following formulae provides the correct (Total) Assets Turnover ratio?

A. Revenues divided by the Average Total Assets of the beginning & ending Balance Sheets

B. Average Total Asset of the two consecutive Balance Sheets divided by the Revenues

C. Net Income divided by the Average Total Assets of the beginning & ending Balance Sheets

D. Revenues divided by the Average Fixed Assets of the beginning & ending Balance Sheets