Answered: rn on total assets can improve its…

rn on total assets can improve its return on equity, all else remaining the same, but A. decreasing its total asset turnover. B. increasing its total asset turnov

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 24CYBK

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Question

A firm with a substandard return on total assets can improve its return on equity, all else remaining the same, but

	A.	decreasing its total asset turnover.
	B.	increasing its total asset turnover.
	C.	increasing its debt ratio.
	D.	decreasing its debt ratio.

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