To Calculate Which of These Measures Do You Need to Know

question 59

Multiple Choice

To calculate which of these measures do you need to know the cost of capital?

• A) ROC.
• B) ROA.
• C) ROE.
• D) EVA.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting guidelines that govern how financial statements are prepared worldwide.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are a set of rules and standards used in financial reporting and accounting in the United States.

Impairment Losses

The decrease in an asset's net carrying value that exceeds its recoverable amount.

Held-to-Maturity

A classification for investment securities that a company intends and has the ability to hold until they mature.