Which of the Following Is the Correct Formula for Calculating

question 187

Multiple Choice

Which of the following is the correct formula for calculating rate of return on total assets?

• A) (Net income + Interest expense) / Average total assets
• B) (Net income - Interest expense) / Average total asset
• C) (Net income - Interest expense) / Total assets
• D) Total equity / Total assets

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Definitions:

Shareholder

An individual or entity that owns at least one share of a company's stock, making them a partial owner of the company.

Stakeholder

An individual or entity with an interest or concern in a business or project, potentially affected by its outcomes.

Milton Friedman

Milton Friedman was an American economist known for his strong belief in free-market capitalism and for his influential works in the fields of economics and economic policy.

Social Responsibility

The idea that businesses should contribute to the welfare of society and not be solely focused on maximizing profits.