Which of the Following Statements About ROA Is True

question 26

Multiple Choice

Which of the following statements about ROA is true?

• A)ROA is useful for comparing companies in different industries.
• B)ROA is the most important ratio for an equity investor.
• C)ROA is useful for determining how the company financed its assets.
• D)ROA reflects the risk inherent in a company.

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Definitions:

Drug Dosage

The amount and frequency of a medication that is prescribed or advised to be taken to achieve desired therapeutic effect.

Erectile Dysfunction

A medical condition where a man struggles to achieve or maintain an erection suitable for sexual intercourse.

Random Assignment

A method used in experiments to allocate participants to different groups using randomization, ensuring each participant has an equal chance of being placed in any group.

Random Sampling

A method of selecting a sample from a population where each member has an equal chance of being chosen.