The Return on Total Assets Is Computed by Dividing

question 9

Multiple Choice

The return on total assets is computed by dividing

• A) Net income by ending total assets.
• B) Net sales by average total assets.
• C) Net sales by ending total assets.
• D) Net income by average total assets.

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Definitions:

Consumption

The act of utilizing economic goods to satisfy needs or desires.

Revealed Preferred

A theory in economics that preferences of consumers can be understood from their purchasing habits and choices, as observed from actual market behavior.

WARP

The Weak Axiom of Revealed Preference, a concept in microeconomics that asserts if a consumer prefers bundle A over bundle B when both are affordable, then the consumer will not choose B over A when B's price decreases making it more affordable.

Bundle

A group or collection of items that are offered together as a single package.