Which of the Following Is True Regarding the Calculation of Return

question 191

Multiple Choice

Which of the following is true regarding the calculation of return on total assets?

• A) the numerator of the ratio consists only of net income.
• B) the denominator of the ratio consists of the balance of total assets at the end of the period under consideration.
• C) the numerator of the ratio consists of net income plus interest expense times the tax rate.
• D) the numerator of the ratio consists of net income plus interest expense times one minus the tax rate.

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Definitions:

Coercive Power

A form of power based on the ability to deliver punishments or impose negative consequences to influence behavior.

Reward Power

The capability to offer rewards or positive incentives in order to influence the behavior of others or secure compliance.

Dynamic Process

A process characterized by constant change, activity, or progress, often requiring ongoing adaptation and management.

Relations of Interdependence

Mutual reliance between individuals, groups, or nations where each party depends on the others for certain resources or outcomes.