Return on Total Assets Is Computed by Dividing ________ by ________

question 86

Short Answer

Return on total assets is computed by dividing ________ by ________.

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Definitions:

Contract Rate

The agreed-upon interest rate specified in a contractual agreement, such as a loan or bond.

Bond

An interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.

Annual Interest Rate

The percentage of interest that will be charged or earned on a principal amount over the course of a year.

Face Value

The nominal value or dollar value printed on a security or a financial instrument, such as a bond or a stock certificate.