At the end of Year 1,the following information is available for Grumpy,Happy,and Doc Companies.

-Which of the following ratios would be most useful in evaluating a company's performance from the owners' perspective?
A)Return-on-assets ratio
B)Debt-to-assets ratio
C)Return-on-equity ratio
D)Either the debt-to-assets ratio or the return-on-equity ratio

Question

At the end of Year 1,the following information is available for Grumpy,Happy,and Doc Companies.
 
-Which of the following ratios would be most useful in evaluating a company's performance from the owners' perspective?
A)Return-on-assets ratio 
B)Debt-to-assets ratio 
C)Return-on-equity ratio 
D)Either the debt-to-assets ratio or the return-on-equity ratio

Quizplus · Accepted Answer

Because owners are interested in the performance of their investment in a company,the return-on-equity ratio is most useful to them in measuring the company's performance.

At the End of Year 1,the Following Information Is Available