Examlex

Solved

Charmaine Company Has a Return on Assets of 12% and a Return

question 52

Essay

Charmaine Company has a return on assets of 12% and a return on ordinary shareholders' equity of 15%. What causes the difference in the two returns?


Definitions:

Consolidated Financial Statements

Combined reporting of the financial statements of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The value for which an asset might be traded or a liability could be transferred in a regulated sale between entities in the market, as determined on the specified date of measurement.

Book Value

The net value of an asset or liability recorded on the balance sheet, calculated as its original cost minus any depreciation, amortization, or impairments.

Acquirer

A company or individual that purchases another company, typically in the context of mergers and acquisitions.

Related Questions