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Financial Accounting: Help and Review18 chapters | 235 lessons

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This quiz and worksheet will expand your cognizance on calculating the return on equity. The quiz will also assess your understanding of concepts like the period of time to measure ROE and revenue.

Use these assessment tools to:

- Understand what it means when ROE declines from year to year
- Define return on equity
- Determine the effect on ROE if the revenue is lower than the expenses for a period
- Realize the performance factors to be analyzed before making a decision about investing in a stock

This worksheet and quiz let you practice the following skills:

**Reading comprehension**- ensure that you draw the most important information from the related lesson on calculating the return on equity**Making connections**- use your understanding of the concept of the formula for return on equity**Distinguishing differences**- compare and contrast topics from the lesson, such as net income and common shareholders' equity

To learn more about how to calculate the return on equity, review the lesson titled Calculating the Return on Equity: Definition, Formula and Example, which covers the following objectives:

- Understand why ROE is used and why it's important
- Interpret net income data on a graph
- Evaluate financial statements of a firm

You are viewing lesson
Lesson
31 in chapter 5 of the course:

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Financial Accounting: Help and Review18 chapters | 235 lessons

- The Differences Between Accrual & Cash-Basis Accounting 6:20
- Using Accrual Accounting to Make Financial Statements More Useful 5:47
- Accrued Expenses & Revenues: Definition & Examples 4:30
- Preparing Financial Statements 7:35
- Temporary & Permanent Accounts: Definition & Differences 4:57
- Real Accounts vs. Nominal Accounts: Definition, Differences & Examples 4:55
- Debt Financing: Definition, Types, Advantages & Disadvantages
- Deficit Financing: Definition & Concept
- Differential Cost in Accounting: Definition, Analysis & Formula 5:21
- Direct Labor: Definition & Cost Formula
- Dividend Payout Ratio: Definition, Formula & Analysis
- How to Calculate Asset Turnover Ratio: Formula & Example 5:24
- How to Calculate Current Yield: Definition, Formula & Graph
- How to Calculate Depreciation Expense: Definition & Formula 8:08
- How to Calculate Free Cash Flow: Formula, Analysis & Example
- How to Calculate Future Value: Formula & Example 4:55
- How to Calculate Gross Profit Margin: Definition & Formula 3:24
- How to Calculate Interest Expense: Formula & Example 4:31
- How to Calculate Internal Rate of Return: Definition & Formula
- How to Calculate Net Present Value: Definition, Formula & Analysis 6:04
- How to Calculate Net Profit Margin: Definition & Formula 4:58
- How to Calculate Net Working Capital: Definition & Formula 5:06
- How to Calculate Owner's Equity: Definition, Formula & Examples 4:09
- How to Calculate Payback Period: Method & Formula 6:00
- How to Calculate Profit Margin: Definition & Formula
- How to Calculate Risk Premium: Definition & Formula 5:29
- How to Calculate Sales Revenue: Definition & Formula 3:37
- How to Calculate the Break-Even Point - Definition & Formula 6:12
- How to Calculate the Degree of Operating Leverage: Formula & Example
- How to Calculate the Rate of Return: Definition, Formula & Example 5:04
- How to Calculate the Return on Equity: Definition, Formula & Example 3:31
- Unearned Revenue in Accounting: Definition & Examples 4:46
- Go to Preparing Financial Statements: Help and Review

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