What Is Primarily Responsible for the Potential Distortion Among the ROA

question 62

Multiple Choice

What is primarily responsible for the potential distortion among the ROA of different firms when net income is used in the numerator of ROA?

• A) Firms have different dividend payout ratios.
• B) Some firms use fully depreciated assets.
• C) Financial leverage varies among firms.
• D) Unprofitable firms will not have tax liability.

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Definitions:

Disease Contributing Factors

Various factors, including genetics, lifestyle choices, and environmental exposures, that increase the likelihood of developing a disease.

Ethnicity

A social division based on shared culture, language, history, and identity, often connected to a specific geographic region or ancestry.

Medical Care

The provision of services to diagnose, treat, and prevent illnesses and maintain physical and mental well-being through healthcare professionals.

America

A continent that comprises the landmasses of North America and South America along with their associated islands and regions.