The Method of Calculating Return on Assets Which Highlights the Importance

question 25

Multiple Choice

The method of calculating return on assets which highlights the importance of sales, profit margin, and asset turnover is known as:

• A)the sales method.
• B)DuPont analysis.
• C)the Altman model.
• D)the Gordon model.
• E)the Return on Assets model.

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Definitions:

Credited

A bookkeeping record that augments liabilities or equity, or diminishes an asset or expense.

Assets

Assets are resources owned by a business or individual that have economic value and can be converted into cash or provide future benefits.

Decreased

A reduction in size, number, or amount of something from a previous level.

Credit

A financial agreement where a borrower receives something of value now and agrees to repay the lender at a future date.