The Cash Flow on Total Assets Ratio

question 35

Multiple Choice

The cash flow on total assets ratio:

• A) Is the same as return on assets.
• B) Is the same as profit margin.
• C) Can be an indicator of earnings quality.
• D) Is highly affected by accounting principles of income recognition and measurement.
• E) Is average net assets divided by cash flows from operations.

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Definitions:

Fraudulent Misrepresentation

Involves knowingly making a false statement with the intent to deceive, leading another party to enter into a contract.

Mutual Mistake

A misunderstanding among all parties involved in a contract, making the contract potentially voidable.

Basic Assumption

An underlying assumption that is accepted as true without proof as the basis for argument or action.

Avoided Contract

A contract that has been declared null and void, often due to legal deficiencies or mutual agreement.