Which of the following ratios increases when inventory is sold on account for a price equal to its original cost?

A) Current.
B) Quick.
C) Return on assets.
D) Return on equity.

Return on Equity

A measure of a corporation’s profitability that reveals how much profit a company generates with the money shareholders have invested.

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficiently a company uses its assets to generate profit.

Inventory Sold

The cost of goods that have been sold from the inventory over a specific period, which is used to calculate the cost of goods sold.