The Rate of Return on Total Assets and the Rate

question 69

Multiple Choice

The rate of return on total assets and the rate of return on ordinary shareholders' equity are used to evaluate the:

• A)ability to pay current liabilities with current assets.
• B)profitability of the business.
• C)cash flow of the business.
• D)liquidity of the business.

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Definitions:

PERT Network

Project Evaluation and Review Technique Network; a project management tool used to schedule, organize, and coordinate tasks within a project.

Variance

A statistical measure that represents the spread of a data set, indicating how far each number in the set is from the mean and from each other.

Critical Path

The longest duration path through a project, determining the shortest time possible to complete the project, where any delay could extend the overall project duration.

Variance

A statistical measure that represents the dispersion or spread of a set of data points.