The Cash Flow on Total Assets Ratio

question 35

Multiple Choice

The cash flow on total assets ratio:

• A) Is the same as return on assets.
• B) Is the same as profit margin.
• C) Can be an indicator of earnings quality.
• D) Is highly affected by accounting principles of income recognition and measurement.
• E) Is average net assets divided by cash flows from operations.

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Definitions:

Eli Terry

An American clockmaker from the early 19th century, known for his role in developing mass production techniques in clockmaking, significantly impacting the industry.

German Immigrants

Individuals from Germany who migrated to another country, significantly impacting the cultural and social composition of their new communities, especially in the 19th and early 20th centuries.

Craftsmen

Skilled workers who create products using their hands, often employing traditional techniques in various trades such as carpentry, metalwork, or weaving.

Shopkeepers

Individuals who own or operate retail businesses, selling goods to the public in shops or similar establishments.