Return on Assets Managed Equals Contribution of the Asset as a Percentage

question 14

True/False

Return on assets managed equals contribution of the asset as a percentage of sales multiplied by the inventory turnover rate.

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Definitions:

Adjusted Trial Balance

A list of all the accounts of a company, showing the balance of each after adjustments have been made for errors, omissions, or accruals.

Current Assets

Assets that are expected to be converted into cash, sold or used up within one year or within the entity's operating cycle, whichever is longer.

Total Assets

The aggregate of all assets owned by a business, evaluated at cost or market value on the balance sheet.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries have been made, used to prepare financial statements.