The return on assets ratio could be used for an):
A)financing decision.
B)liquidity decision.
C)investment decision.
D)debt-to-equity decision.

Question

Quizplus · Accepted Answer

The return on assets ratio measures a company's ability to generate profits from its assets. This information is useful for determining the efficiency of a company's operations and can inform investment decisions. It is not relevant for financing decisions (which focus on sources of funding) or liquidity decisions (which focus on a company's ability to meet short-term obligations). It is also not directly related to the debt-to-equity decision, although it may provide some insight into a company's ability to service its debt.

The Return on Assets Ratio Could Be Used for An)