Which of the following statements is true?
A)Return on equity (ROE)divides profit by average total assets.
B)Return on assets (ROA)divides operating profit by average total assets.
C)When return on assets (ROA)is greater than return on equity (ROE)we have negative financial leverage.
D)The current ratio is a measure of solvency.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true?
A)Return on equity (ROE)divides profit by average total assets.
B)Return on assets (ROA)divides operating profit by average total assets.
C)When return on assets (ROA)is greater than return on equity (ROE)we have negative financial leverage.
D)The current ratio is a measure of solvency.

Which of the Following Statements Is True