Indicate Whether Each of the Following Statements About Financial Statement

question 132

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
The asset turnover ratio is calculated by dividing net income by average total assets.______
The asset turnover ratio is likely to be high in an industry in which operations require only a minimal investment in assets.______
Return on equity measures the wealth generated by the amount of assets invested in a business.______
A higher value for the return on investment ratio would generally indicate more effective company management.______
The use of financial leverage often causes a business's return on equity to be lower than its return on investment.______

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Definitions:

Deoxyribonucleic Acid

The molecule that carries genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses, commonly abbreviated as DNA.

Abbreviation

A curtailed form of a word or phrase.

Carcinoembryonic Antigen

A protein that may be present in the blood of a person who has certain cancers, used as a marker in cancer diagnosis and monitoring.

Abbreviation

An abbreviation is a shortened form of a word or phrase used to save space or time.