Which of the Following Statements Best Describes the Term "Return

Multiple Choice

Which of the following statements best describes the term "return on equity" (ROE) ?

A) ROE is a measure of the effectiveness of the entity in using the assets provided by owners to generate net income.
B) ROE is the measure of the amount of dividends that have been returned to the shareholders.
C) ROE is measure of how effective the entity is at controlling expenses.
D) ROE is the measure of the risk and liquidity of an entity.