Which of the Following Is the Formula for Computing the Rate

question 38

Multiple Choice

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

• A)(Net income - preferred dividends)/number of shares of outstanding common stock
• B)Net income/net sales
• C)(Net income + interest expense)/average total assets
• D)(Net income - preferred dividends)/average common stockholders' equity

Comprehend the principles of liability recognition and measurement, including contingent liabilities and instalment payments.

Master the concepts related to the effective-interest method and its application in financial reporting.

Learn the accounting treatments for different types of loans and payables, including interest calculations and loan repayments.

Differentiate between financial and non-financial liabilities and their respective accounting treatment.

---

Definitions:

Fastest-Growing

Describes entities or phenomena that expand or increase at the highest rate compared to others in a certain context.

SES

Stands for Socioeconomic Status, which refers to an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Lower Class

A social class characterized by low income, limited educational attainment, and restricted access to resources and opportunities.

Upper Class

A social stratum that typically enjoys the highest status, wealth, and education in a hierarchical society.