Return on assets is useful to decision makers for evaluating management, analyzing and forecasting profits, and in planning activities.

Question

Quizplus · Accepted Answer

Return on assets (ROA) is an important financial ratio that measures how efficiently a company is using its assets to generate profits. It is useful to decision makers such as investors, creditors, and managers for evaluating management performance, analyzing and forecasting profits, and in planning business activities. Therefore, the statement is true.

Return on Assets Is Useful to Decision Makers for Evaluating