Which of the Following Is the Correct Formula for Calculating

question 3

Multiple Choice

Which of the following is the correct formula for calculating rate of return on total assets?

• A)Rate of return on total assets = (Net income + Interest expense)/ Average total assets
• B)Rate of return on total assets = (Net income - Interest expense)/ Average total asset.
• C)Rate of return on total assets = (Net income - Interest expense)/ Total assets
• D)Rate of return on total assets = Total equity / Total assets

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Definitions:

Critical Management Reviews

Comprehensive evaluations of an organization's strategies, operations, and management practices to identify strengths and areas for improvement.

Controlling

In management, this refers to the process of monitoring performance and taking corrective action to ensure that organizational goals are achieved.

Malicious Connotations

Implies a harmful or spiteful significance often associated with words, phrases, or contexts that intend to damage or deceive.

Controlling

The management function concerned with monitoring performance, comparing it with goals and standards, and taking corrective action as needed.