The Cash Flow on Total Assets Ratio Is Calculated By

question 118

Multiple Choice

The cash flow on total assets ratio is calculated by:

• A) Dividing cash flows from operations by average total assets.
• B) Dividing total cash flows by average total assets.
• C) Dividing average total assets by cash flows from investing activities.
• D) Dividing average total assets by total cash flows.
• E) Total cash flows divided by average total assets times 365.

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Definitions:

Price Takers

Market participants who accept the prevailing market price without having the influence to change it due to their relatively small size in the market.

Loss-minimizing

A strategy employed by businesses to reduce the amount of financial losses incurred during unfavorable market conditions or through poor operational decisions.

Units of Output

The quantity of product produced, serving as a measure of a firm's or industry's total production.

Profit-maximizing

A strategy or approach aimed at achieving the highest possible profit, where revenue exceeds costs by the greatest amount.