Final answer:
The statement is false; returns can be measured in multiple ways, including the actual rate of return which accounts for capital gains and interest, not just accounting metrics like return on assets, equity, or sales.
Step-by-step explanation:
The statement that returns can only be measured in accounting terms such as return on assets, return on equity, or return on sales is False. Returns on investments can be measured in various ways beyond accounting metrics. The actual rate of return, for instance, includes not only accounting profits like total revenues minus explicit costs but also capital gains and interest earned over a period. This reflects the performance of an investment after adjusting for the risk and time value of money. Moreover, investors often consider the rate of return in the context of financial investments, weighing the potential rewards against the associated risks. If an investment becomes riskier or if its expected return diminishes, investors might shift their funds to a different investment, affecting the supply curves of financial capital for each investment.