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Explain the Difference in the Calculation of Return on Assets

question 135

Essay

Explain the difference in the calculation of return on assets and cash return on assets.How can cash-based ratios supplement the analysis of ratios based on income statement and balance sheet information?


Definitions:

Provision

A liability of uncertain timing or amount, recognized in the accounting records for future liabilities or losses.

Wage Rise

An increase in the rate of pay received by employees.

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