Return on Assets Can Be Stated as Which of the Following

question 4

Multiple Choice

Return on assets can be stated as which of the following?

• A) net after-tax profit divided by total assets
• B) net profit margin times asset turnover
• C) net cash flow divided by total assets
• D) both a and b
• E) both a and c

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Definitions:

Price Buyers Pay

The amount of money that consumers are required to pay to acquire a good or service.

Price Sellers Receive

The amount of money that producers get from selling one unit of a good or service, after considering all costs and expenses.

Consumer Surplus

The dissimilarity in what consumers intend to pay for a good or service versus what they actually spend.

Producer Surplus

The disparity between the minimum amount sellers are ready to take for a product or service and the actual price they get in the market.