If a Company Has a Strong Rate of Return on Total

question 106

True/False

If a company has a strong rate of return on total assets, that shows that they can easily pay off their current liabilities with their current assets.

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Definitions:

Course of Dealing

A sequence of actions or conduct between parties in a business or legal relationship that establishes a common basis for understanding future transactions.

Usage of Trade

Established practices, methods, or customs that are widely accepted and utilized in a particular industry or trade.

Dealer Appliance Outlet

A retailer specializing in the sale of appliances, typically offering products from various manufacturers.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed to be enforceable, including those for the sale of land or goods above a certain value.