One Important Difference Between Return on Assets (ROA)and Return on Common

question 21

Multiple Choice

One important difference between return on assets (ROA) and return on common shareholder's equity (ROCE) is

• A) ROA does not differentiate based on how a company finances its assets; ROCE does.
• B) ROA does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROCE does.
• C) ROCE does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROA does.
• D) ROCE does not differentiate based on how a company finances its assets; ROA does.

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Definitions:

Distress of Illness

The emotional, physical, and psychological discomfort or pain caused by the experience of being ill.

Personal Life

Aspects of an individual's life that are personal or private, including relationships, hobbies, and home life.

Caring Behaviors

Actions that demonstrate concern, empathy, and consideration for the needs and well-being of others.

Clear Explanations

Detailed and understandable descriptions or instructions that leave little to no room for confusion.