The Segment Return on Assets

question 50

Multiple Choice

The segment return on assets:

• A)Is applicable whether segments earn profits or losses.
• B)Reflects on the profitability of a segment.
• C)Is difficult to calculate because companies with traded stock are not required to report segment information.
• D)Is calculated as segment average assets divided by segment operating income.
• E)Is calculated as segment sales divided by segment average assets.

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Definitions:

Limit

The maximum or minimum boundary or point beyond which a certain condition applies or is possible.

Guarantees

Formal promises or assurances, typically by manufacturers or sellers, to stand behind the quality or performance of a product.

Enclosures

Additional documents or materials that are included with a letter or other form of communication.

Prospective Customers

Individuals or entities that are potential buyers of a product or service, having shown interest but not yet made a purchase.