Which of the Following Is the Best Indicator of Management's

question 30

Multiple Choice

Which of the following is the best indicator of management's effectiveness at generating profits relative to the firm's assets?

• A) Quick ratio
• B) Fixed assets turnover
• C) Return on assets
• D) Accounts receivable turnover

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Definitions:

Null Hypothesis

A hypothesis that states there is no statistical significance between two variables and any observed difference is due to chance.

F-test

The F-test is a type of statistical test that determines if there are significant differences between the variances of two or more samples.

Coefficient of Determination

A statistical measure, often denoted as R^2, that represents the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effect on dependent variables.