karnevil
Member
- Joined
- Aug 12, 2003
- Messages
- 441
- Gender
- Male
- HSC
- 2003
Okay if you guys already knew this, u can sit on it. For those of you who didn't, listen up:
When you're calculating the Return on OE ratio, some schools have taught students NOT to include net profit as OE, but rather just to use Capital. The HSC line says that either way is fine, you wont be marked wrong for either.
E.g. on a balance sheet >>>
Owners Equity:
net profit = 100,000
capital = 800,000
if you did:
100,000 / (100,000+800,000)
OR
100,000 / 800,000
it wouldnt matter. both are right
goodluck everyone!
When you're calculating the Return on OE ratio, some schools have taught students NOT to include net profit as OE, but rather just to use Capital. The HSC line says that either way is fine, you wont be marked wrong for either.
E.g. on a balance sheet >>>
Owners Equity:
net profit = 100,000
capital = 800,000
if you did:
100,000 / (100,000+800,000)
OR
100,000 / 800,000
it wouldnt matter. both are right
goodluck everyone!