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:

Levels

Refers to the different stages, degrees, or categories in a hierarchical structure or system.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and promote plant growth.

Sunny Side

A term commonly referring to the side of an object or place receiving the most sunlight, or the optimistic perspective of a situation.

Shady Side

A term referring to the darker, cooler, or less exposed area or aspect of something, often used literally or metaphorically to describe a situation or place.