ROTA and Transposition error: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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Return On Total Assets.
1.
A simple error of data entry when two digits in a number are reversed (transposed).
 
When two adjacent digits are transposed the error will always be divisible by 9.
 
For example:
If 3,460 should be 3,640
the difference is 180 (3,640-3,460=180)
180/9 = 20.
 
 
2.
Similar errors with non-numerical data.
For example ABC entered wrongly as ACB.




== See also ==
== See also ==
* [[Return on capital employed]]
* [[Double counting]]
* [[Return on equity]]
* [[Return on investment]]
* [[Return on total assets]]

Revision as of 13:07, 14 August 2013

1. A simple error of data entry when two digits in a number are reversed (transposed).

When two adjacent digits are transposed the error will always be divisible by 9.

For example: If 3,460 should be 3,640 the difference is 180 (3,640-3,460=180) 180/9 = 20.


2. Similar errors with non-numerical data. For example ABC entered wrongly as ACB.


See also