Mark knows that Bob does not want to spend a lot of time pouring over his financ

Question

Mark knows that Bob does not want to spend a lot of time pouring over his financial statements. Which of the following statements would be helpful if Mark wanted to suggest an easy way to remember how certain factors affect his company's ROA?

A. All else being equal, a decrease in the cost of goods sold will decrease ROA

B. All else being equal, an increase in the cost of goods sold will decrease ROA

C. All else being equal, an increase in depreciation will increase ROA

D. All else being equal, the cost of goods sold have no effect on ROA

Explanation / Answer

B. All else being equal, an increase in the cost of goods sold will decrease ROA

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.