Which Financial Statement(s)do You Need to Calculate the Return on Assets

question 9

Multiple Choice

Which financial statement(s) do you need to calculate the return on assets?

• A)only the income statement
• B)only the balance sheet
• C)both the income statement and the balance sheet
• D)both the statement of cash flows and the income statement

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Definitions:

Bonus Contracts

Agreements that specify the conditions under which bonuses will be awarded to employees or partners, often tied to performance metrics.

LIFO Conformity Rule

A requirement that if the Last-In, First-Out (LIFO) inventory valuation method is used for tax purposes, it must also be used for financial reporting.

SEC

Securities and Exchange Commission, an independent federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock and options exchanges in the United States.

International Accounting Standards

A set of older accounting standards that were replaced by IFRS, previously developed by the International Accounting Standards Committee (IASC) to guide financial reporting internationally.