The rate of return on total assets and the rate of return on ordinary shareholders' equity are used to evaluate the:
A)liquidity of the business.
B)cash flow of the business.
C)ability to pay current liabilities with current assets.
D)profitability of the business.

Question

Quizplus · Accepted Answer

The rate of return on total assets and the rate of return on ordinary shareholders' equity are measures of profitability. They help evaluate the company's ability to generate profits from its assets and how much profit is available for shareholders.

The Rate of Return on Total Assets and the Rate