The Cash Flow on Total Assets Ratio Is Calculated By

question 52

Multiple Choice

The cash flow on total assets ratio is calculated by:

• A)Dividing cash flows from operations by average total assets.
• B)Dividing total cash flows by average total assets.
• C)Dividing average total assets by cash flows from financing activities.
• D)Dividing average total assets by total cash flows.
• E)Total cash flows divided by average total assets times 365.

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Definitions:

Dividends Received

The payments a shareholder receives from a company out of its profits or reserves as a return on the shareholder's investment.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Cash Dividend

A financial distribution from a firm's profits to its investors, typically provided as cash.

Stockholders’ Equity

The ownership claim of shareholders on total assets. It is to a corporation what owner’s equity is to a proprietorship.