The Segment Return on Assets

question 92

Multiple Choice

The segment return on assets:

• A) Reflects on the profitability of a segment.
• B) Is difficult to calculate because companies with traded stock are not required to report segment information.
• C) Is applicable whether segments earn profits or losses.
• D) Is calculated as segment sales divided by segment average assets.
• E) Is calculated as segment average assets divided by segment operating income.

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Definitions:

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