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Which of the Following Statements Is Most Accurate

question 68

Multiple Choice

Which of the following statements is most accurate?


Definitions:

Profit Margin

A financial ratio representing the percentage of revenue that remains as profit after all expenses have been deducted.

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.

Return On Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit.

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