1. 2. 3. ROA (return on assets) is measured by Earnings before interest & tax/ Average total...

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ROA (return on assets) is measured by Earnings before interest & tax/ Average total assets Assume ROA is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The receipt of proceeds from a 5-year reducing balance bank loan [ Select ] ROA (return on assets) is measured by Earnings before interest & tax/ Average total assets Assume ROA is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The receipt of proceeds from a 5-year reducing balance bank loan [ Select ]

Answer rating: 100% (QA)

Answer As Cash is received it will increase average total assets therefore deno... View the full answer