One important difference between return on assets (ROA) and return on common shareholder's equity (ROCE) is (A)
Question:
One important difference between return on assets (ROA) and return on common shareholder's equity (ROCE) is
(A) ROCE does not differentiate based on how a company finances its assets; ROA does.
(B) ROCE does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROA does.
(C) ROA does not differentiate based on how a company finances its assets; ROCE does.
(D) ROA does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROCE does.
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney