Asked by
Teresa Taylor
on Dec 16, 2024
Verified
If the return on assets is positive, an increase in total assets will result in
A) an increase in the return on assets.
B) a decrease in the return on assets.
C) no change in the return on assets.
D) the effect cannot be determined.
Return On Assets
ROA, also known as Return on Assets, quantifies the efficiency with which a company uses its assets to generate net income, serving as an indicator of managerial effectiveness.
Total Assets
The sum of all resources owned by a company, valued in monetary terms.
- Comprehend the principle of return on assets and its sensitivity to variations in asset values.
Verified Answer
HB
Learning Objectives
- Comprehend the principle of return on assets and its sensitivity to variations in asset values.