The following ratios were computed from the financial statement of Darren Technologies: Which of the following statements is true?
A) There has been a steady decline in ROE from 2009 through 2011.
B) The increase in ROA is due primarily to the changes in asset turnover.
C) The changes in ROA could be due to increasing sales.
D) The change in ROA could be due to a large increase in the asset base of the company.

Question

The following ratios were computed from the financial statement of Darren Technologies:  Which of the following statements is true?
A) There has been a steady decline in ROE from 2009 through 2011. 
B) The increase in ROA is due primarily to the changes in asset turnover. 
C) The changes in ROA could be due to increasing sales. 
D) The change in ROA could be due to a large increase in the asset base of the company.

Quizplus · Accepted Answer

The Answer of The following ratios were computed from the financial statement of Darren Technologies:  Which of the following statements is true?
A) There has been a steady decline in ROE from 2009 through 2011. 
B) The increase in ROA is due primarily to the changes in asset turnover. 
C) The changes in ROA could be due to increasing sales. 
D) The change in ROA could be due to a large increase in the asset base of the company.

The Following Ratios Were Computed from the Financial Statement of Darren