The rate of return on total assets measures a company's ________
A) ability to meet its short-term obligations
B) ability to repay its long-term debt
C) success in using assets to earn income
D) success in earning high returns on investments in stocks and bonds of other companies
C
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On January 1, Year 1, Needham, Inc., borrowed $10,000 at 6% for four years. On December 31, Year 1, Needham made its first installment payment of $2,886. Show the effect of the first installment payment on the accounting equation. Round the amounts to the nearest dollar. What is liability?
A. (2,286) Cash B. (600) Notes Payable C. (2,886) Notes Payable D. (600) Cash E. (2,886) Interest Expense F. (2,886) Cash G. (2,286) Notes Payable H. (600) Interest Expense I. 0 No Effect
Rapid inflation, cyclical unemployment, war, hurricanes, and floods are all examples of
A) diversifiable risks. B) physical hazards. C) nondiversifiable risks. D) speculative risks.