The Rate of Return on Assets Indicates

question 183

Multiple Choice

The rate of return on assets indicates:

• A) The margin of safety provided to creditors.
• B) The extent of "trading on the equity" or financial leverage.
• C) Profitability without regard to how resources are financed.
• D) The effectiveness of employing resources provided by owners.

---

Definitions:

Contributory Negligence

Contributory Negligence is a legal doctrine where a plaintiff's failure to take proper care for their own safety can reduce or eliminate the defendant's liability.

Comparative Negligence

A legal doctrine that allocates damages based on the degree of fault or negligence found against each party in a lawsuit.

Tax Liability

The total amount of tax that individuals, corporations, or other entities are legally obligated to pay to a taxing authority.

Misstate Information

To provide incorrect or misleading information, either intentionally or unintentionally.