The Rate of Return on Total Assets Is Calculated by Subtracting

question 84

True/False

The rate of return on total assets is calculated by subtracting interest expense from net income and dividing it by average assets.

---

Definitions:

Ledger Accounts

Records that summarize transactions related to a specific asset, liability, equity, revenue, or expense, forming the backbone of the double-entry bookkeeping system.

Journal Entries

Records of the financial transactions of a business that are entered into its accounting system.

Posting

The process of recording financial transactions in the ledger of a business.

Chart of Accounts

A structured list of all the financial accounts in the general ledger of a company, used for organizing transactions and reporting financial data.