Which of the following statements is the most reasonable conclusion from the given information below of ABC Company? Net profit: P54,000 Debt ratio: 35% Total liabilities: P295,750 Industry average return on asset: 10.3% ABC Company's ROA is above the industry average, which suggests it is generating more return on its investment in assets when comparted to firms in the industry. ABC Company's ROA is above the industry average, which suggests it is generating less return on its investment in assets when comparted to firms in the industry. ABC Company's ROA is below the industry average, which suggests it is generating more return on its investment in assets when comparted to firms in the industry. ABC Company's ROA is below the industry average, which suggests it is generating less return on its investment in D assets when comparted to other firms in the industry.
Which of the following statements is the most reasonable conclusion from the given information below of ABC Company? Net profit: P54,000 Debt ratio: 35% Total liabilities: P295,750 Industry average return on asset: 10.3% ABC Company's ROA is above the industry average, which suggests it is generating more return on its investment in assets when comparted to firms in the industry. ABC Company's ROA is above the industry average, which suggests it is generating less return on its investment in assets when comparted to firms in the industry. ABC Company's ROA is below the industry average, which suggests it is generating more return on its investment in assets when comparted to firms in the industry. ABC Company's ROA is below the industry average, which suggests it is generating less return on its investment in D assets when comparted to other firms in the industry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
M9
Transcribed Image Text:Which of the following statements is the most reasonable conclusion from the given information below of ABC Company?
Net profit:
P54,000
Debt ratio: 35%
Total liabilities:
P295,750
Industry average return on asset: 10.3%
ABC Company's ROA is above the industry average, which suggests it is generating more return on its investment in
A
assets when comparted to firms in the industry.
ABC Company's ROA is above the industry average, which suggests it is generating less return on its investment in
В
assets when comparted to firms in the industry.
ABC Company's ROA is below the industry average, which suggests it is generating more return on its investment in
C
assets when comparted to firms in the industry.
ABC Company's ROA is below the industry average, which suggests it is generating less return on its investment in
assets when comparted to other firms in the industry.
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