Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
ROE is a better measure of the companys performance RO...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Question Posted:
Students also viewed these Accounting questions
-
Which one is more powerful for motivating subordinates; referent power or expert power?
-
Consider each pair of bases, and select which one is more basic. You may want to draw their conjugate acids, and think about which one is a stronger acid. (a) (c) -C=C: H (d) OH CEN:
-
Why is ROE generally much higher than ROA for banks relative to other industries?
-
Which one of the following is NOT an example of cash flows in operating activities according to direct method? Select one: a. Cash payment for purchase of inventories b. Cash received from debtors c....
-
Find the length of the logarithmic spiral r = e/2 from = 0 to = 2.
-
A field test is conducted in a confined aquifer by pumping a constant discharge of 14. 9 m3/hrfrom a 20-cm-diamecer well. After an approximate steady state is reached, adrawdown of 0.98 mis measured...
-
( Appendix 7A) When a perpetual inventory system is used, unit costs of the items sold are known at the date of each sale. In contrast, when a periodic inventory system is used, unit costs are known...
-
On July 1, 2010, Rossillon Company issued $4,000,000 face value, 8%, 10-year bonds at $3,501,514.This price resulted in an effective-interest rate of 10% on the bonds Rossill on uses the...
-
At a company, planned sales are equal to 2 , 0 0 0 units for every month from January to December ( 1 2 months ) . Beginning inventory at the beginning of January is 4 , 0 0 0 units. The company's...
-
There is a lottery with n coupons and n people take part in it. Each person picks exactly one coupon. Coupons are numbered consecutively from 1 to n, n being the maximum ticket number. The winner of...
-
In the context of the standard cash flow statement, what is operating cash flow?
-
What is the difference between the "retained earnings" number on the income statement and the balance sheet?
-
A survey of 100 persons at Better Widgets finds that 40 jog, 25 swim, 16 cycle, 15 both swim and jog, 10 swim and cycle, 8 jog and cycle, and 3 persons do all three. How many people at Better Widgets...
-
You are planning an audit sample for confirmation of accounts receivable. The aged trial balance of receivables after removal of individually significant items has a remaining population of...
-
For each one of the following statements indicate whether the statement is true or false. a. Decisions about the nature of auditing procedures to be applied are confined to selecting the particular...
-
Important audit procedures for the balance accounts receivable usually include the following: a Confirm account balances with selected customers. b Inquire of management and read agreements and...
-
The scope of audit procedures can be modified by varying the nature, timing, or extent of procedures selected. Explain how materiality at the account balance level may be a consideration that...
-
Martin & Co., a CPA firm, has adopted the following specific percentages for the indicated qualitative levels of risk: Minimum 30% Moderate 50% Maximum 100% Martin & Co. has also decided to use a 5...
-
Grandma Gwens Bakery reported net sales revenue of $52,000 and cost of goods sold of $22,000. Compute Grandma Gwens Bakerys correct gross profit if the company made either of the following...
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
For the following questions, you will need to consult the statutory code of your state and/or the opinions of courts in your state. (See General Instructions for the State-Code Assignment and for the...
-
Given the information for Dyrdeks Skate Shop, Inc., in the previous two problems, suppose you also know that the firms net capital spending for 2020 was $575,000, and that the firm reduced its net...
-
Ritter Corporations accountants prepared the following financial statements for year-end. RITTER CORPORATION Income Statement 2020 Revenue...............$1,282 Expenses..................945...
-
Fizer, Inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company. Explain what each number means. FIZER, INC. 2020 Income Statement...
-
a . With the aid of examples, discuss the differences between diversifiable and non - diversifiable risks. ( 5 marks ) b . Distinguish between loss control and premiums and show their relationship. (...
-
XYZ Corporation's balance sheet on December 31, 2023, is provided below: Item Amount ($) Accounts Payable 1,600,000 Notes Payable 1,580,000 Accrued Expenses 1,460,000 Total Current Liabilities ?...
-
A company produces 20,000 units at a total cost of $400,000. If the variable cost per unit is $10, determine the fixed costs associated with production and discuss their implications for cost...
Study smarter with the SolutionInn App