Return on Assets = _____

question 127

Multiple Choice

Return on assets = _____

• A) Current Assets/Current Liabilities
• B) Sales/Total Assets
• C) Total Debts/Total Assets
• D) Net Income/Total Assets
• E) Current Assets - Inventories/Current Liabilities

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Definitions:

Carrying Value

The recorded value of an asset in a company's financial statements, considering factors like depreciation or amortization.

Investment Sale

A transaction in which assets, often securities, are sold to another party for the purpose of generating funds or realizing profits.

Equity Method

This accounting approach is applied when an investor holds significant control over an investee, indicating a substantial interest but not full control or majority stake.

Consolidation Entries

Accounting entries used in preparing consolidated financial statements that eliminate transactions between the parent company and its subsidiaries.