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Margaret [11]
4 years ago
14

Return on Assets is a valuable financial measurement because it indicates how profit margin, asset turnover, and the equity mult

iplier affect a companies return.True or False?
Business
1 answer:
erica [24]4 years ago
4 0

Answer:

True

Explanation:

Return on assets (ROA) is she valuable measure in assessing the effectiveness of company management in utilizing company capital. It is calculated

ROA=

Total Assets/

Net Income

​

where:

Total Assets=Shareholder Equity+Liabilities

Return on assets is closely related to return on equity as they are both almost used for same purpose which is measuring management's effectiveness in capital utilization. Return on equity differs from return on assets by the inclusion or exclusion of the debt factor in calculating them.

​

The relationship between ROA and ROE is demonstrated in DuPont formula which is given

ROE=profit margin*asset turnover*shareholder equity

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23. What law states that a decrease in price brings about an increase in the quantity<br> demanded?
denis-greek [22]
The law of demand states that, other things remaining the same, if the price of a good rises, the quantity demanded of that good decreases; and if the price of a good falls, the quantity demanded of that good increases.
3 0
4 years ago
With a client-based network, one fundamental problem is that:
stich3 [128]

Answer:

The correct answer is: d) all data on the server must travel to the client for processing

Explanation:

This client server model has several advantages and disadvantages which are important to mention and know when establishing if it is what we need or if it suits what we are looking for.

Disadvantages

  • It requires skill for a server to be repaired. For example, if a problem occurs on the network, someone with a large number of it is required to be able to repair it in its entirety in order to let the information and the proper functioning continue its flow.
  • Another problem is security, the fact that information channels are shared between servers and clients require that they go through validation processes, that is, security protocols that can have some type of open door allowing physical damage, threats or attacks to be generated. of malware.
  • This model represents an important limitation in terms of economic costs because these servers are high-level computers with specific hardware and software to enable our applications to function properly. Something important to note is that it is not only expensive to solve problems as mentioned before, but also has a high cost to replace components that are damaged.
7 0
3 years ago
Why does the free-market system require government regulation?
Elenna [48]
 In free-market system <span>the business is privately owned and operated, which means that it  is not owned or controlled by the government.</span>
The free-market system require government regulation, because the producers are driven by the profit motive to work against competition. Government regulation will enable and ensure fair competition and protect consumers.
7 0
3 years ago
Read 2 more answers
Are a family’s resources unlimited? true or false?
Kazeer [188]
False Its not unlimited its going to end at some time or another
5 0
3 years ago
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The Corbit Corp. sold merchandise on account for, $7,200. Corbit Corp. utilizes the periodic inventory system. The cost of the m
alisha [4.7K]

Answer:

Debit Accounts receivable 7,200

Credit Sales 7,200

Debit Cost of Merchandise Sold 3,950

Credit Merchandise Inventory 3,950

Explanation:

When Corbit corps sells merchandise on account it means that cash was not received for the transaction. So we debit accounts receivable (an asset account to indicate increase in amount receivable by us). A credit is now passed to sales to show increased sales.

On merchandise we debit cost of merchandise sold and credit Merchandise inventory (an asset account is credited to indicate reduction) to indicate merchandise has reduced.

6 0
3 years ago
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