Return on Total Assets Measures

question 61

Multiple Choice

Return on total assets measures:

• A) The percent of profit in each dollar of net sales.
• B) A company's ability to increase its asset base from sales.
• C) A company's ability to increase its asset base from profit.
• D) A company's ability to produce sales from their assets.
• E) A company's ability to produce profit from their assets.

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Definitions:

Direct Method

A way of presenting cash flows from operating activities by listing major classes of gross cash receipts and payments.

Loss Recovery

The process of recouping losses from previous investment or business activities, often by adjustments in strategy or receiving compensations.

Allowance Method

The Allowance Method is an accounting technique that estimates and accounts for doubtful accounts, reducing the accounts receivable to its net realizable value.