The Ratio That Measures the Productivity of Total Assets Used

question 84

Multiple Choice

The ratio that measures the productivity of total assets used is the:

• A)rate of return on total assets.
• B)return on sales.
• C)Inventory turnover.
• D)rate of return on common stockholders' equity.

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Definitions:

Retained Earnings

Retained earnings refer to the portion of net income left over after dividends are paid out to shareholders, which is reinvested into the company.

Retroactive Restatement

Adjusting previously reported financial statements to reflect better understanding or corrections of past errors.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.

Common Stock

Represents ownership shares in a corporation, giving holders a claim on part of the company’s assets and earnings.