rn on total assets can improve its return on equity, all else remaining the same, but A. decreasing its total asset turnover. B. increasing its total asset turnov
rn on total assets can improve its return on equity, all else remaining the same, but A. decreasing its total asset turnover. B. increasing its total asset turnov
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter14: Completing A Quality Audit
Section: Chapter Questions
Problem 24CYBK
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Question
A firm with a substandard return on total assets can improve its return on equity, all else remaining the same, but
A. |
decreasing its total asset turnover. |
|
B. |
increasing its total asset turnover. |
|
C. |
increasing its debt ratio. |
|
D. |
decreasing its debt ratio. |
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