Explaining Why the ROA (Return on Assets)ratio Has Changed Necessitates

question 61

Multiple Choice

Explaining why the ROA (return on assets) ratio has changed necessitates an examination of:

• A)the liquidity ratios and asset efficiency ratios
• B)the profitability ratios and the market performance ratios
• C)the asset efficiency ratios and the liquidity ratios
• D)the profitability ratios and the asset efficiency ratios

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Definitions:

Resource

Assets, materials, or inputs used to produce goods and services, including natural resources, human resources, and capital.

AVC Curve

Represents the Average Variable Cost Curve, which shows the relationship between a firm's output and the variable costs per unit of output, typically declining and then rising.

AFC Curve

The Average Fixed Cost curve, which represents the fixed costs of production divided by the quantity of output produced, typically demonstrating a downward slope as output increases.

ATC Curve

In economics, the Average Total Cost curve is a graphical representation that shows the per-unit cost of production (total cost divided by the quantity produced) at different levels of output.