Multiple Choice
One important difference between return on assets (ROA) and return on common shareholder's equity (ROCE) is
A) ROA does not differentiate based on how a company finances its assets; ROCE does.
B) ROA does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROCE does.
C) ROCE does not distinguish between the different types of income items, such as income from continuing operations, discontinued operations, extraordinary items and changes in accounting principles; ROA does.
D) ROCE does not differentiate based on how a company finances its assets; ROA does.
Correct Answer:

Verified
Correct Answer:
Verified
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