The Cash Flow on Total Assets Ratio

question 35

Multiple Choice

The cash flow on total assets ratio:

• A) Is the same as return on assets.
• B) Is the same as profit margin.
• C) Can be an indicator of earnings quality.
• D) Is highly affected by accounting principles of income recognition and measurement.
• E) Is average net assets divided by cash flows from operations.

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or controlled to test their effects on dependent variables.

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Error Term

The error term represents the difference between observed values and the values predicted by a model in statistical analysis.

Independent Variables

Variables in an experiment or model that are manipulated or categorized to observe their effect on dependent variables.