When Calculating Return on Net Operating Assets, Deferred Taxes Should

question 9

True/False

When calculating return on net operating assets, deferred taxes should be deducted from the denominator.

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Definitions:

Curb

To check, restrain, or control an action or development, often used in the context of regulations or policies designed to limit certain behaviors.

Felsic

Refers to igneous rocks that are rich in lighter elements such as silicon and oxygen, generally characterized by light colors.

Mafic

A material having high contents of magnesium (Mg) and iron (Fe), generally accompanied by a decreased amount of silica.