Profit Before Finance Costs Is Used in Calculating Return on Total

question 5

Multiple Choice

Profit before finance costs is used in calculating return on total assets because:

• A) interest rates are hard to predict.
• B) it is simpler to calculate than profit after deducting finance costs.
• C) the efficient use of resources should be examined independently of the method of financing.
• D) interest is a tax deduction for a company.

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Definitions:

Gender Socialization

The process by which individuals learn the cultural norms and expectations associated with their gender through socialization.

Self-Concepts

The collection of beliefs, perceptions, and evaluations individuals have about themselves.

Social Attitudes

The beliefs, feelings, and behaviors that people have towards other individuals, groups, ideas, or practices.

Functionalist Perspective

A theoretical approach that views society as a complex system whose parts work together to promote solidarity and stability.