Indicate Whether Each of the Following Statements About Financial Statement

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a)The asset turnover ratio is calculated by dividing net income by average total assets.
_____ b)The asset turnover ratio is likely to be high in an industry in which operations require only a minimal investment in assets.
_____ c)Return on equity measures the wealth generated by the amount of assets invested in a business.
_____ d)A higher value for the return on investment ratio would generally indicate more effective company management.
_____ e)The use of financial leverage often causes a business's return on equity to be higher than its return on investment.