Which of the following statements is true?
a. The return on assets ratio indicates whether the company can pay its current debt when it becomes due.
b. The causes for an increase or decrease in the return on assets ratio can be examined by calculating its two components: return on sales and asset turnover.
c. If a company successfully applies leverage, its return on assets ratio will be greater than its return on common stockholders' equity ratio.
d. If a company's return on assets ratio increases, the increase can be the result of decreased liquidity.
b
You might also like to view...
Which of the following is the amount the borrower must pay back to the bondholders at maturity?
A) market value B) present value C) stated interest value D) principal amount
When the salesperson sells to customers and does not contact them again, the process is known as:
A. technology selling. B. transfer selling. C. follow up. D. transaction selling. E. relationship selling.
Which of the following is needed to impose a quasi-contract?
A) A promise asking for action and the requested action having been completed B) A benefit having been conferred and objective intent that it be conferred C) A benefit having been conferred and injustice if the benefit were not paid for D) Actions implying a contract and an agreement as to the price
Employees can be disciplined, or even discharged, for work-related misconduct even if they are affiliated with a union.
Answer the following statement true (T) or false (F)