Which of the Following Describes the Return on Assets Ratio

question 171

Multiple Choice

Which of the following describes the return on assets ratio?

• A) Net income divided by average total assets
• B) Net income plus income tax expense divided by average total assets
• C) Average total assets divided by net sales
• D) Average total assets divided by net income

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Definitions:

Economic Information

Data related to the production, distribution, and consumption of goods and services that informs decision-making.

Acquire

To obtain ownership of something, such as a company purchasing another company or an individual acquiring an asset.

Self-Interest

The pursuit of personal gain or advantage, which is a fundamental economic assumption about human behavior.

Welfare

Welfare denotes governmental support aimed at ensuring the basic physical and material well-being of people, particularly those in need.