When Computing Return on Equity (ROE),it Is Best to Divide

question 8

True/False

When computing return on equity (ROE),it is best to divide profit by the year-end shareholders' equity amount rather than using an average shareholders' equity amount.

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Definitions:

Discipline

The practice of training oneself to follow rules or a code of behavior, often using self-control or punishment to correct disobedience.

Disciplined

Exhibiting self-control and a commitment to following rules or a strict regime, often in the pursuit of a goal or maintaining order.

Responsible

Having an obligation to do something, or having control over or care for someone, as part of one's job or role.

Creative

Possessing the ability or skill to create new and original ideas, products, or solutions.