Return on Net Operating Assets Is a Better Measure of Operating

question 27

True/False

Return on net operating assets is a better measure of operating performance than return on equity, as it is independent of the form of financing.

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Definitions:

Miscellaneous Expenses

Minor or incidental expenses that do not fit into the standard expense categories of a business's budget.

Unadjusted Trial Balance

A summary listing of the titles and balances of accounts in the ledger prior to the posting of adjusting entries.

Account Title

The name given to an account in the ledger to identify the type of transactions it records, such as "Sales Revenue" or "Accounts Payable."

Unearned Revenues

Money received by a company for goods or services that have yet to be delivered or performed.