The Cash Flow on Total Assets Ratio

question 35

Multiple Choice

The cash flow on total assets ratio:

• A) Is the same as return on assets.
• B) Is the same as profit margin.
• C) Can be an indicator of earnings quality.
• D) Is highly affected by accounting principles of income recognition and measurement.
• E) Is average net assets divided by cash flows from operations.

---

Definitions:

Attrition

A process of gradually reducing the strength or effectiveness of someone or something through sustained attack or pressure.

Employee Layoffs

The act of terminating employees, often due to economic downturns or organizational restructuring.

Seniority

The concept of individuals gaining certain privileges or positions based on the length of time they have been with an organization or in a particular job.

Human Resources Planning

A process used by organizations to ensure they have the right number of employees, with the right skills, in the right places, at the right times to achieve their objectives.