If the Return on Common Stockholders' Equity Is More Than

question 2

True/False

If the return on common stockholders' equity is more than the industry standard, it means the company is using debt financing successfully.

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Definitions:

Drawing

In accounting, refers to the withdrawal of cash or goods by the owner from a business for personal use.

Account Group

An account group is a categorization of individual financial accounts in the general ledger that helps organize and report financial information.

Owner's Equity

The portion of a company’s assets that belongs to the owners after liabilities have been deducted.

Supplies

Items that are used in the daily operations of a business or organization, often consumed in the process.