What Would Be the Return on Total Assets of a Firm

question 83

Multiple Choice

What would be the return on total assets of a firm if net income is $50,000, total sales are $100,000, and total assets are $175,000?

• A)35%
• B)28.6%
• C)57.14%
• D)not enough information available

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Definitions:

Frame Shop

A business specializing in creating and selling frames, primarily for artwork and photographs.

Cash Account

A type of account that records all cash transactions, including cash receipts and payments, providing a clear view of a company’s liquid assets.

Transactions Posted

Transactions Posted refers to the process of recording financial transactions in the ledger of an accounting system, ensuring that the financial records are accurate and up-to-date.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received.