The Numerator in the Return on Assets Ratio Is

question 89

Multiple Choice

The numerator in the return on assets ratio is:

• A)net sales
• B)net income
• C)gross margin
• D)average total assets

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Definitions:

Actual Rates

The current, real-time rates or prices for services, goods, or financial products in the market.

Transfer Price

The price at which goods or services are traded between divisions within the same company.

Internal Transfers

Internal transfers involve the movement of assets, funds, or resources from one part of an organization to another. This can include financial transactions or the reallocation of personnel and materials within the company.

Reported Profits

The net income as stated in a company’s financial statements, reflecting revenues minus expenses, including taxes and cost of goods sold.