Question: Return on assets (ROA) : Will increase as long as operating profit margin increases. Will decrease as long as asset turnover decreases. Is not useful

Return on assets (ROA) :

Will increase as long as operating profit margin increases.

Will decrease as long as asset turnover decreases.

Is not useful in helping analysts isolate achieved cost reductions.

Is useful in helping analysts isolate efficiency gains in asset management.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Mavron plc owned the following motor vehicles as at 1 April 2006: Mavron plcs policy is to provide at the end of each financial year depreciation using the straight line method applied on a...

Q:

QUESTION 1 1.Which of the following are overstated as a result of the failure to record an accrued liability? Net income, current ratio and rate of return on debt. Current ratio, acid-test ratio and...

Q:

1.Which of the following are overstated as a result of the failure to record an accrued liability? Net income, current ratio and rate of return on debt. Current ratio, acid-test ratio and rate of...

Q:

8/11/2020 Take Test: Quiz 3 - B6020 - ACCOUNTING (MBA) 2020/2021 ... Institution Page B6020 - ACCOUNTING (MBA) 2020/2021 Trimester 1 CoB (NBS) LI JIERAN Courses Test & Quizzes NTU Tools 13 Help Take...

Q:

I need help doing these 10 problems, please help! Question 1 Consider the following mutually exclusive investments 1 2 Investment A: -100 20 120 Investment B: -100 100 31.25 Find IRRs for both...

Q:

EX 5 1. In a common size cash flow statement, all items are expressed as a percentage of: A. sales. B. total assets. C. net income. D. total equity. 2. Which one of the following successful...

Q:

Hello dear, I need help in answering the 8 excel sheets and qualitative analysisfor case study exam for managerial accounting, I will attach the following: 1. The case study (FARMACY INC.:...

Q:

Return on assets equals: Profit margin Inventory turnover. B) Gross profit ratio Asset turnover. C) Gross profit ratio Inventory turnover. D) Profit margin Asset turnover. 33.If your employer...

Q:

QUESTION 1 Which of the following are overstated as a result of the failure to record an accrued liability? a. Net income, current ratio and rate of return on debt. b. Current ratio, acid-test ratio...

Q:

Please kindly provide the solution / explanation. The following facts apply to Question 1 On 1 January 2011, Company Disney issued bonds with the following features: -Face value of the bond is...

Q:

Please provide the calculations on excel or word file along with the solution Research paper on Apple INC. The paper should be approximately 7 - 10 pages (12 - font, double-spaced) in length. Proper...

Q:

Males under the age of 25 must pay far higher auto insurance premiums than females in this age group. How does this fact relate to statistical discrimination? Statistical discrimination implies that...

Q:

What is the average vertical velocity (in m/s) of a sprinter who covers the first 20 meters of a 100 meter race in 4 seconds? Choose one answer: a. near 0 b. 25 c. 80 d. 5 e. 20

Q:

A swimming pool is 50 m long and 25 m wide. It is 1.2 m deep at the shallow end and 2 m deep at the other end. Find 50 m 25 m 1.2 m 2 m 5001 m (i) the volume of water in the pool when it is full,...

Q:

Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purchase. If purchases are budgeted to be $40,000 for August and $36,000 for...

Q:

As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared...

Q:

On 1 June 20X8, Ghana Company purchased $ 7,000,000 of Monaco Corporation 5.8% bonds, classified as an AC investment. The bonds pay semi- annual interest each 30 May and 30 November. The market...

Q:

The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the...

Q:

Explain the difference between a public corporation and a private corporation.

Q:

(Chapter 12: Economic Order Quantity) Pepsi Co. desires to control inventory levels so as to minimize the sum of holding and ordering costs. It costs the firm $20 to place an order. The firm...

Q:

1. Discuss the following statements: a) When the cause is identified, the effect has always occurred already. b) Predictions made with hindsight are almost always correct.

Q:

2. Take a familiar problem as your starting point. What are the main elements of the problem? Discuss whether you all agree on the choice of main elements.

Q:

2. In this chapter, the reader should reflect on the following concepts: Context, winwin, win-lose, ambiguity, mental model, point of reference.