Return on Equity Can Increase as a Result of an Increase

question 23

Multiple Choice

Return on equity can increase as a result of an increase in which of the following ratios?

• A)Net income/ sales
• B)Sales/ total assets
• C)Total assets/ equity
• D)All of the above will have a positive influence on the ROE.

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Definitions:

Specified Period

A clearly defined duration of time, set out in an agreement, contract, or statute, during which certain actions can take place or conditions apply.

Real Estate Sales Agreement

A legally binding contract between a buyer and a seller outlining the terms and conditions of the sale of real property.

Legal Description

A precise way of describing a piece of land in legal documents.

Contingent

Dependent on certain conditions or events which must occur before an agreement or commitment is fulfilled.