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:

Money Economy

A system where goods and services are exchanged using money as a medium, rather than through barter.

Money Economy

A system in which goods and services are traded using money as a medium of exchange rather than barter.

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without using money.

Double Coincidence

A situation in a barter system where two parties each hold an item the other wants, facilitating an exchange without the need for money.