The Numerator of the Return on Total Assets Is

question 168

Multiple Choice

The numerator of the return on total assets is

• A) net income
• B) net income plus tax expense
• C) net income plus interest expense
• D) net income minus preferred dividends

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Definitions:

Externalities

The positive or negative impacts of a market transaction experienced by third parties not directly involved in the transaction.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good.

Global Warming

The long-term rise in Earth's average surface temperature due to human activities, particularly the emission of greenhouse gases, leading to climate change.

Marginal Benefit

The boost in value or pleasure gained from the consumption of one more unit of a good or service.