The Return on Assets Ratio Measures How Well

question 20

Multiple Choice

The return on assets ratio measures how well

• A)current assets are used to provide cash for the purchase of long-term assets.
• B)a company's assets create sales revenue.
• C)a company manages its assets.
• D)assets have been employed in conducting the business.

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Definitions:

Time Of Purchase

The specific point in time when goods or services are bought, which can influence the cost and availability.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost of materials, adjusted for the actual quantity purchased.

Production Line

An arrangement of machines and workers in a factory where a product passes sequentially from operation to operation until completed.

Waste

Unwanted materials or substances produced by a manufacturing process or during consumption, often associated with inefficiency or environmental harm.