What does the rate of return on total assets measure, and how is it calculated?

Q: Identify the cash flow series associated with production or service over thelife of the asset?

A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…

Q: How to calculate net present value with capital expenditures.

A: Capital expenditure refers to the amount incurred by the busi9ness in purchasing fixed assets for…

Q: What is the Total·assets·turnover ratio?

A: Ratio Analysis: The process of analyzing financial ratios and comparing its degree of performance…

Q: The flow of money or its equivalent produced by an asset dividends and interest a. investment b.…

A: An investment is defined as an asset or invested, which used in building the wealth as well as…

Q: haat is the relationship between Income Measurement and Asset Valuation?

A: Profit or loss calculation is indeed a simplified method of calculating income. An accountant…

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: How is can CAPM, Sharpe ratio, Treynor measures and Jensen’s Alpha be used to maintain positive…

A: The performance of portfolio or investment should not evaluated only using the return of portfolio…

Q: What does the Total-Assets-Turnover Ratio measure?

A: The asset turnover ratio computes the value of the benefits or income of an organization comparative…

Q: What are the Return on Total Assets?

A: Return on total assets: Return on total assets (ROTA) is a ratio that calculates a corporation's…

Q: Explain the Principle of Investing in Financial Assets?

A: Securities are the financial assets that are traded in the financial or secondary or securities…

Q: Define the term Total-Assets-Turnover Ratio?

A:

Q: What are some of the accounting applications that incorporate the time value of money into…

A:

Q: Which items comprise operating current assets? Why is itreasonable to assume that they grow…

A: Operating current assets are the short-term assets utilized to promote a business's processes

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired…

Q: What is the significance of the FCF (Free Cash Flow) in the area of valuation?

A: Cash flows refer to the cash expenditure and cash receipt of the business over a specific time…

Q: Why is the operating return on assets ratio also referred to as the operating returnon investment?

A: Introduction: Operating asset return is nothing but a profitability measure and it is a difference…

Q: When does the Capital expenditures occur?

A: Capital expenditure is the money spent by business on acquiring fixed assets like land, building…

Q: What is net investment in operating capital?

A: The Net investment in operating capital is a two-part study that discusses two various types of…

Q: Explain an example how to calculate rate of return on total assets.

A:

Q: Explain the significance of time value of money in financial valuation?

A: Time value of money means the value of a sum of money in future is not the same as the value of…

Q: What is the difference between capital expenditure and revenue expenditure?

A: Capital Expenditure: Expenses Incurred and the corresponding benefit out of such expenses lasts for…

Q: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: asset turnover ratio?

A: Asset turnover ratio = Sales/((Total assets at the beginning of the year + Total assets at the end…

Q: What is the return on total assets given the figures attached?

A: Return on total assets is the comparison of operational income with that of the total assets. It…

Q: Financial assets in the economy include all but which one of the following?

A: A financial asset is a liquid asset whose value is derived on a legal claim or ownership interest.…

Q: How is valuation of any financial asset related to future cash flows?

A: Valuation of a financial asset=Present value of expected future cash flows

Q: What is the operating cash flow? The capital spending? The change is net working capital? The cash…

A: Capital spending is termed as the amount spent by the firm in the year to purchase or maintain the…

Q: Why does an increase in the ratio of current assets to total assets decrease both profits and risk…

A: Current assets and current liabilities are utilized to decide the liquidity of an organization. At…

Q: How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs…

A: Classified balance sheet: The main elements of balance sheet assets, liabilities, and stockholders’…

Q: Illustrates how the net cash flow is related to the net income?

A: Cash flow refers to the inflow and outflow of cash from three major activities that are carried out…

Q: lationship between Income Measurement and Asset Valuation

A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…

Q: what the meaning of current assets ratio?

A: Assets are the rights and resources being held by the business. Assets that are either in cash or…

Q: Total Assets value?

A: Total assets is the value of the assets which company is having at a particular date which company…

Q: . How does one determine the value of any assetwhose value is based on expected future cash flows?

A: If there is an order of anticipated upcoming cash flows, cash flow technique is one of the finest…

Q: . What is the amount of depreciation under cash basis?

A: Cash basis of accounting is one of the basis of accounting, under which all cash receipts are…

Q: What do the Asset management ratios measure?

A: Asset management (turn over) ratios compare an organization's assets with its turnover. Asset…

Q: Does the value of any asset depends on the cash flows producedby the asset? Why?

A: Asset valuation involves the determination, using book values, of a fair market, or the present…

Q: What is fixed assets turnover ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Define the term Return on Total Assets? What does it measure?

A:

Q: How is the value of any asset whose value is based on expected future cash flows determined?

A: Answer: When there is a sequence of expected future cash flows, cash flow method is one of the best…

Q: How does accounting help the capital allocation process?

A: Capital allocation: A capital allocation is the process of allocating total capital amount into…

Q: What effect does the recognition of depreciation expense have on total assets?  On total equity

A: Depreciation expense is recorded by debiting the depreciaton expense account and crediting…