We Calculate Cash Return on Assets as the Change in Cash

question 42

True/False

We calculate cash return on assets as the change in cash divided by average total assets.We calculate cash return on assets as net cash flows from operating activities divided by average total assets.

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Definitions:

Fund Financial Statements

Financial reports specifically prepared to show the financial position and results of operations for governmental funds and non-profit organizations.

Special Revenue Fund

A fund used by governments to account for revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Decrease in Financial Resources

A reduction in the amount of money, assets, or other financial means available to an individual or organization.

General Fund

A central and primary operating fund of a government, covering general operating expenses and services.