The Return on Assets Ratio Could Be Used for An)

question 43

Multiple Choice

The return on assets ratio could be used for an) :

• A)financing decision.
• B)liquidity decision.
• C)investment decision.
• D)debt-to-equity decision.

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Definitions:

Total Assets

The sum of all current and non-current assets owned by an individual or a business entity.

Stockholder's Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest.

Ratio Analysis

Calculations that measure an organization’s financial health.