A Company Has Sales of $640,000, Net Profit After Taxes

question 39

Multiple Choice

A company has sales of $640,000, net profit after taxes of $23,000, and a total asset turnover of 2.5. What is the return on assets?

• A) 4.5%.
• B) 9.0%.
• C) 3.6%.
• D) 8.1%.

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Definitions:

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

External Control

Refers to the belief that one's behavior and outcomes are influenced or dictated by external forces beyond one's personal control.

Interactional Psychology

The psychological approach to understanding human behavior that involves knowing something about the person and about the situation.

Environmental Influences

External factors surrounding an individual or system that affect its development, behavior, or operations.