Calculate Return on Assets from the Following Information: Net Income

question 126

Multiple Choice

Calculate return on assets from the following information: Net income $1,800,000
Current Assets $350,000
Land and building $250,000

• A) 1:1
• B) 3:2
• C) 4:1
• D) 2:2
• E) 3:1

Understand the role of ethical leadership and collaboration in promoting ethical practices in organizations.

Understand the concept and application of flexible budgets.

Differentiate between flexible and static budgets.

Identify controllable and noncontrollable expenses.

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Definitions:

Financial Calculators

Electronic tools or software used to perform financial operations and calculations, including loan payments, investment returns, and more.

Interest Rate

The tariff a borrower pays to a lender, calculated as a proportion of the principal, for the right to employ certain assets.

Present Value

Calculated by discounting future cash flows to understand their worth in today's terms, taking into account the time value of money.

Simple Interest

Interest calculated on the principal amount only, not on accrued interest from previous periods.