We Calculate Return on Equity (ROE) by Dividing Net Earnings

question 40

True/False

We calculate return on equity (ROE) by dividing net earnings by average shareholders' equity.

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Definitions:

Property Taxes

Taxes assessed on real estate and sometimes personal property, based on the assessed value of the property.

Balance Sheet

A financial report detailing a company's assets, liabilities, and equity of shareholders at a given moment.

Monthly Amount

A specific sum of money calculated or paid on a monthly basis for various financial obligations or income sources.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred, ensuring that financial statements reflect accurate values.