true false 1 return on assets is a measure for evaluating how efficient a company is 4352267

TRUE/FALSE

1.Return on assets is a measure for evaluating how efficient a company is at generating net income from its existing level of sales..

2.Operating profit margin measures a company's efficiency in controlling product costs and selling and administration expenses.

3.Companies that sell large quantities of similar low-cost products, usually will compete on the basis of product differentiation.

4.Inventory turnover measures a company's ability to convert its profits into cash.

5.Accounts receivable turnover measures a company's ability to convert its inventory into accounts receivable.

6.Inventory turnover is the ratio of cost of goods sold to inventory

7.Gross profit margin is the ratio of gross profit to net income.

8.The three components of return on equity are profit margin, asset turnover, and financial leverage.

9.The income statement, balance sheet, and statement of cash flows are the primary financial accounting reports.

10.Accounting is primarily the process of recording transactions in journals and ledgers.

 

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