Although It Is Recommended That the Return on Assets Ratio

question 159

True/False

Although it is recommended that the return on assets ratio be formulated to reflect average assets, either way (average assets or ending assets), the result discloses the firm's capacity to utilize its assets efficiently without regard to the sources of capital that fund the assets, while the return on equity can bias the results by the degree to which the company leverages itself (uses debt).

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Definitions:

Brachiation

A form of locomotion used by some primates, involving swinging from one arm to another through trees with a hand-over-hand movement, critical for moving through canopy levels in forests.

Trail Markers

Signs or symbols placed along a trail or path to guide or provide information to travelers, hikers, or explorers.

Ovulation

The moment when an egg released from an ovary into the womb is receptive for fertilization.

Social Organizational Unit

Refers to structured groups within a society, such as families, religious organizations, or clubs, that govern how individuals interact and fulfill collective and individual needs.