The Income Number Used in the Rate of Return on Assets

question 124

True/False

The income number used in the rate of return on assets is income after interest expense is added back.

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Definitions:

Consolidated Earnings Per Share

A measure of a company's profitability that takes into account earnings from all of the entities it controls, presented on a per-share basis.

Acquisition-Date Fair Value

The fair value of an asset or liability measured at the date a business combination is effected.

Bonds Payable

A long-term liability account on a company’s balance sheet that represents the amount owed to bondholders by the issuer, to be repaid at a future date.