Use the Following Information for ECE Incorporated

question 36

Multiple Choice

Use the following information for ECE incorporated:

-If ECE's return on assets (ROA) is 12%,then ECE's return on equity (ROE) is:

• A)10%.
• B)12%.
• C)18%.
• D)22%.

---

Definitions:

Installment Sales

Revenue recognition method allowing income to be realized at the time of sale but received through regular payments over time.

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Nontaxable Life Insurance

A type of life insurance policy where the proceeds paid on death or the cash value accumulation during the policyholder's lifetime are not subject to income taxes.