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    Financial Statement Analysis: True/False

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    Chloe Gabriel Evangeline Chase
    The document contains 4 true/false questions about financial statement analysis and calculating ratios. It tests understanding of the rate of return on total assets ratio, how it is calculated using average total assets in the denominator, and how it compares to the rate of return on common stockholders' equity ratio.

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    Financial Statement Analysis: True/False

    Uploaded by

    Chloe Gabriel Evangeline Chase
    13 views2 pages
    The document contains 4 true/false questions about financial statement analysis and calculating ratios. It tests understanding of the rate of return on total assets ratio, how it is calculated using average total assets in the denominator, and how it compares to the rate of return on common stockholders' equity ratio.

    Original Description:

    Accounting

    Original Title

    1708

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    The document contains 4 true/false questions about financial statement analysis and calculating ratios. It tests understanding of the rate of return on total assets ratio, how it is calculated using average total assets in the denominator, and how it compares to the rate of return on common stockholders' equity ratio.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    13 views2 pages

    Financial Statement Analysis: True/False

    Uploaded by

    Chloe Gabriel Evangeline Chase
    The document contains 4 true/false questions about financial statement analysis and calculating ratios. It tests understanding of the rate of return on total assets ratio, how it is calculated using average total assets in the denominator, and how it compares to the rate of return on common stockholders' equity ratio.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Chapter 17—Financial Statement Analysis

    TRUE/FALSE

    34. The rate earned on total assets measures the profitability of


    total assets, without considering how the assets are financed.

    ANS: T PTS: 1 DIF: Easy OBJ: 17-03


    NAT: AACSB Analytic | AICPA FN-Measurement |
    ACBSP-APC-23-Financial Statement Analysis

    35. In computing the rate earned on total assets, interest expense is


    subtracted from net income before dividing by average total
    assets.

    ANS: F PTS: 1 DIF: Easy OBJ: 17-03


    NAT: AACSB Analytic | AICPA FN-Measurement |
    ACBSP-APC-23-Financial Statement Analysis

    36. The denominator of the rate of return on total assets ratio is the
    average total assets.

    ANS: T PTS: 1 DIF: Easy OBJ: 17-03


    NAT: AACSB Analytic | AICPA FN-Measurement |
    ACBSP-APC-23-Financial Statement Analysis

    37. When the rate of return on total assets ratio is greater than the
    rate of return on common stockholders' equity ratio, the
    management of the company has effectively used leverage.

    ANS: F PTS: 1 DIF: Easy OBJ: 17-03


    NAT: AACSB Analytic | AICPA FN-Measurement |
    ACBSP-APC-23-Financial Statement Analysis

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