Which of the Following Is NOT Correct Regarding the Rate

question 39

Multiple Choice

Which of the following is NOT correct regarding the rate of return on assets?

• A) The rate of return on assets measures management's ability to productively employ all its resources.
• B) The rate of return on assets measures the return on all assets used regardless of how the assets are financed.
• C) The rate of return on assets is a measure of profitability.
• D) The rate of return on assets measures the return on the investment made by the owners of the entity.

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Definitions:

Percent Less

A term indicating a reduction or discount expressed as a percentage of the original price or value.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Nickel Content

The proportion or percentage of nickel present within a material or alloy.

Scrap Steel

Discarded steel material that can be recycled and used in new steel production.