Which of the Following Would Result in Lower Return on Assets

question 20

Multiple Choice

Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?

• A)A reduction in earnings before interest and taxes
• B)An increase in asset turnover
• C)A reduction in total assets
• D)An increase in profit margin

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Definitions:

Zona Reticularis

The innermost layer of the adrenal cortex that produces androgenic steroids.

Glucagon

A hormone produced by the pancreas that increases blood glucose levels by stimulating the liver to break down glycogen into glucose.

Pancreas

A glandular organ located in the abdomen that plays an essential role in digestion and blood sugar regulation, by secreting digestive enzymes and insulin.

Antidiuretic Hormone

A hormone secreted by the pituitary gland that helps control the balance of water in the body by reducing the amount of water excreted in the urine.