A decrease in the return on equity ratio could be caused by an increase in [blank].
A)the tax rate only
B)cost of goods sold or the total assets
C)total assets only
D)the tax rate, cost of goods sold or total assets

Question

Quizplus · Accepted Answer

A decrease in the return on equity ratio could be caused by multiple factors, such as an increase in the tax rate, an increase in the cost of goods sold, or an increase in total assets. Therefore, the best choice is D, which includes all of these factors.

A Decrease in the Return on Equity Ratio Could Be