Explain and Illustrate,with Simple Examples,both the Usefulness and Any Possible

question 14

Essay

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the:
rate-of-return on total assets ratio
rate-of-return on equity ratio
times dividends earned ratio
Why are these described as 'efficiency ratios'?

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Definitions:

Expand Activities

The process of increasing the scope, reach, or scale of a company's operations or projects.

Management Accounting

This entails the generation of reports and financial statements for management, containing up-to-date and accurate financial and statistical details essential for supervisors to make decisions on a daily and short-term basis.

Government Agencies

Public sector organizations that operate at various levels of government, responsible for the oversight and administration of specific functions and regulations.

Managers Within

Refers to managerial staff operating inside an organization, focusing on internal processes, team management, and decision-making.