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:

Attorney

A professional who advises and represents clients in legal matters, including drafting legal documents, and presenting cases in court.

Frustration-Aggression Principle

The Frustration-Aggression Principle suggests that frustration, or the blocking of an individual's attempts to achieve a goal, leads to aggressive behavior.

Arab-Americans

Americans of Arab descent who are part of a diverse group coming from the 22 Arab countries in the Middle East and North Africa.

Other-Race Effect

The cognitive bias to more easily recognize faces of the race that one is most familiar with, which can contribute to difficulties in cross-racial identification.