61. Return on assets is useful to decision makers for evaluating management, analyzing and…

 
   

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61.
Return on assets is useful to decision makers for evaluating management,
analyzing and forecasting profits, and in planning activities.
True False

1-8

Chapter
01 – Accounting in Business

62.
Arrow’s net income of
$117 million and average assets of $1,400 million results in a return on assets
of 8.36%.

True False

63. Return
on assets reflects the effectiveness of a company’s ability to generate profit
through productive use of its assets.
True False

64. Risk
is the uncertainty about the return we expect to earn.
True False

65.
Generally the lower the
risk, the lower the return that can be expected. True False

66.
U. S. Government
Treasury bonds provide high return and low risk to investors. True False

67. The
four basic financial statements include the balance sheet, income statement,
statement of owner’s equity, and statement of cash flows.
True False

68. An
income statement reports on investing and financing activities.
True False

69.
A balance sheet covers a period of time such as a month or year. True False

1-9

Chapter
01 – Accounting in Business

70.
The income statement
displays revenues earned and expenses incurred over a specified period of time
due to earnings activities.

True False