Which of the Following Statements Is True

question 24

Multiple Choice

Which of the following statements is true?

• A) The columns on the financial statements do not represent DR or CR columns.
• B) The columns on the financial statement are for making computations.
• C) The columns on the financial statement are for listing totals.
• D) All of the above.

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Definitions:

Return on Common Stockholders' Equity

A measure of the profitability and efficiency with which a company's common equity is employed, derived from net income divided by common stockholders' equity.

Net Income Before Taxes

The amount of profit a company has earned before any taxes have been deducted.

Equity for Common Stockholders

The portion of a company’s equity capital that is attributable to holders of common stock, representing their ownership interest.

Return on Total Assets

A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets, indicating how efficiently a company uses its assets to generate earnings.