What Is the ROA of a Firm with $150,000 in Average

question 68

Multiple Choice

What is the ROA of a firm with $150,000 in average receivables, which represents 60 days sales, average assets of $750,000, and a profit margin of 9 percent?

• A)7.50 percent
• B)9.00 percent
• C)10.95 percent
• D)16.70 percent 60 =

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Definitions:

Mathematical Procedures

Systematic operations or processes in mathematics that involve calculation, reasoning, and problem-solving.

Level of Significance

A statistical threshold used to determine if a result can be considered statistically significant, often denoted by alpha (α).

Statistical Risk

Statistical risk quantifies the likelihood of a negative event occurring. It is often used in the context of financial markets, health studies, and other areas requiring risk assessment based on numerical data.

Variability

The extent to which data points in a statistical distribution or dataset differ from each other and from their mean.