Return on Assets Is Defined As

question 53

Multiple Choice

Return on assets is defined as:

• A) Sales divided by net fixed assets.
• B) EBIT divided by net fixed assets.
• C) Net income divided by net fixed assets.
• D) EBIT divided by total assets.
• E) Net income divided by total assets.

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Definitions:

Locomotive Division

A specialized business unit within a company that focuses on the design, manufacture, or maintenance of locomotives and related equipment.

Profit Margin

The percentage of revenue that turns into profit after all expenses have been deducted.

Mason

A skilled tradesperson who works with brick, stone, and other durable materials to build or repair structures.

Responsibility Accounting Reports

Financial reports that measure the performance of organizational units or departments, emphasizing the accountability of managers for controllable costs.