Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The return on assets ratio indicates whether the company can pay its current debt when it becomes due.
B) The causes for an increase or decrease in the return on assets ratio can be examined by calculating its two components: return on sales and asset turnover.
C) If a company successfully applies leverage,its return on assets ratio will be greater than its return on common stockholders' equity ratio.
D) If a company's return on assets ratio increases,the increase can be the result of decreased liquidity.