Which of the following is NOT correct regarding the rate of return on assets? a. The rate of return on assets measures management’s ability to productively employ all its resources. b. The rate of return on assets measures the return on all assets used regardless of how the assets are financed. c. The rate of return on assets is a measure of profitability. d. The rate of return on assets measures the return on the investment made by the owners of the entity. is B the correct answer?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which of the following is NOT correct regarding the rate of return on assets?

a.

The rate of return on assets measures management’s ability to productively employ all its resources.

b.

The rate of return on assets measures the return on all assets used regardless of how the assets are financed.

c.

The rate of return on assets is a measure of profitability.

d.

The rate of return on assets measures the return on the investment made by the owners of the entity.

is B the correct answer?

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