Which of the Following Statements About ROA Is True

question 23

Multiple Choice

Which of the following statements about ROA is true?

• A) ROA is the most important ratio for an equity investor.
• B) ROA refiects the risk inherent in a company.
• C) ROA is useful for determining how the company financed its assets.
• D) ROA is useful for comparing companies in different industries.

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Definitions:

Government Publication

A document issued by a government agency or body, often containing statistics, research findings, or legal texts.

Empirical Research

A method of inquiry that relies on direct observation or experiment to gather data and knowledge, as opposed to theories or logic alone.

Interview

A formal meeting in which one or more persons question, consult, or evaluate another person.

Government Publication

Official documents or materials published by government entities, sometimes accessible to the public for informational purposes.