Return on Assets Is a Very Important Analytical Tool Because

question 10

True/False

Return on assets is a very important analytical tool because it measures how effectively management is using a firm's assets to generate profits.

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Definitions:

Inventory

The components, items in the process of completion, and completed products which form part of a company's assets that are available or will soon be available for sale.

Fair Value

The estimated price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.