The Denominator in the Return on Equity Ratio Should Only

question 2

True/False

The denominator in the return on equity ratio should only include the equity accounts that belong to the common shareholders.

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Definitions:

Statute Of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved, to be enforceable.

Admission

The act of conceding to a point in an argument or acknowledging the truth of a claim, or the allowance into a place, organization, or institution.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence to modify, vary, or contradict the terms of a written contract.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has relied on that promise to their detriment.