Indicate Whether Each of the Following Statements About Financial Statement

Indicate whether each of the following statements about financial statement analysis is true or false.________ a)The asset turnover ratio is calculated by dividing net income by average total assets.________ b)The asset turnover ratio is likely to be high in an industry in which operations require only a minimal investment in assets.________ c)Return on equity measures the wealth generated by the amount of assets invested in a business.________ d)A higher value for the return on investment ratio would generally indicate more effective company management.________ e)The use of financial leverage often causes a business's return on equity to be lower than its return on investment.