When Calculating Return on Net Operating Assets, the Numerator Is

question 51

True/False

When calculating return on net operating assets, the numerator is net income plus minority interest.

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Definitions:

Incurred Expense

An expense that a company has recognized on its books, representing a cost that has been encountered in the operation of the business.

Wages Paid

This refers to the total amount of remuneration paid by an employer to an employee, including salaries, commissions, and bonuses, for work performed during a specific period.

Unearned Revenue

Income received by a business for goods or services yet to be provided; considered a liability until the service or product is delivered.

Recognizes Revenue

The process of recording revenue in the financial statements when it is earned and realizable, following the accrual accounting principle.