Return on Equity Can Increase as a Result of an Increase

question 23

Multiple Choice

Return on equity can increase as a result of an increase in which of the following ratios?

• A)Net income/ sales
• B)Sales/ total assets
• C)Total assets/ equity
• D)All of the above will have a positive influence on the ROE.

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Definitions:

Transitional Epithelium

A type of epithelial tissue that can stretch and change its shape, found in areas such as the bladder.

Urinary Bladder

A hollow muscular organ that stores urine from the kidneys before it is excreted through the urethra.

Stratified Squamous

A type of epithelial tissue composed of multiple layers of flat cells, providing protection in areas of high abrasion.

Macula Densa

A group of specialized cells located in the distal convoluted tubule of the kidney, involved in regulating blood pressure and the filtration rate of the kidneys.