Which ratio shows the portion

Which ratio shows the portion of return (net profit) in percent (%) of the company’s investment made into its entire resources?

Group of answer choices

Return on Equity

Average Daily Rate

Return on Asset

Return on Sales

Asset Turnover

Which of the following descriptions is wrong about ratios and ratio analysis?

Group of answer choices

Business managers must learn to use ratios to identify real problems that may be presented by ratios.

Ratios can be used as direct answers to the problems a company may face.

Certain ratios can indicate the company’s ability to handle its long-term debt using its entire resources.

Some ratios can indicate whether the company has enough resources on hand to pay its immediate debt.

ROS can provide information about how effectively operating costs and expenses have been controlled in its operations.

-Retained Earnings are part of Owners’ Equity although the entire amount is included in the company’s assets.

Group of answer choices

True or False

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