Return on Assets Measures

question 150

Multiple Choice

Return on assets measures:

• A)how much the entity earned for each dollar of assets invested.
• B)return on sales times total asset turnover.
• C)profitability of a company's core business operations.
• D)A and B.

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Definitions:

P(A Or B)

The probability that at least one of two events, A or B, will occur.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other.

P(A And B)

The probability of both event A and event B occurring together.