Which of the Following Statements Is True

question 96

Multiple Choice

Which of the following statements is true?

• A)Return on equity (ROE)divides profit by average total assets.
• B)Return on assets (ROA)divides operating profit by average total assets.
• C)When return on assets (ROA)is greater than return on equity (ROE)we have negative financial leverage.
• D)The current ratio is a measure of solvency.

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Definitions:

Context

The circumstances, background, or settings that influence and give meaning to an event, statement, or idea.

Goals

Targets, objectives, or desired outcomes that individuals, groups, or organizations aim to achieve.

Situation

The set of circumstances or context in which events occur or decisions are made.

Convergent Goals

Goals shared by different parties or individuals that align and lead towards a common objective, fostering cooperation.