True or False: A bond issue does affect the Return on Assets (ROA).

The statement that a bond issue does affect the Return on Assets (ROA) is false. ROA is calculated by dividing a company's net income by its total assets. The issuance of bonds primarily affects the liabilities of a company rather than the assets directly.

When a company issues bonds, it receives cash (an increase in assets) but also takes on a corresponding liability (the bond payable). If the proceeds from the bond are not invested in assets that generate additional income, there would be no increase in net income from that asset addition in the calculation of ROA, resulting in an unchanged ROA.

While the use of the bond proceeds can eventually impact ROA if those funds are effectively used to generate profit (such as investing in profitable projects), the mere act of issuing the bonds in itself does not affect ROA directly. Thus, the correct conclusion is that issuing bonds does not inherently change ROA, supporting the choice that the statement is false.