Net Income Divided by Average Total Assets Is Equal to The

question 110

Multiple Choice

Net income divided by average total assets is equal to the:

• A)Profit margin.
• B)Total asset turnover.
• C)Return on total assets.
• D)Days' income in assets.
• E)Current ratio.

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Definitions:

Accounts

Records that summarize and classify all financial transactions of a business, including assets, liabilities, equity, revenue, and expenses.

Debt Ratio

A ratio indicating a company’s leverage by comparing its total debt to its total assets.

Financial Condition

A description of an entity's financial status, assessing its ability to remain solvent and meet its obligations, based on its assets, liabilities, and equity.

Insurance Appraiser

A professional who assesses and determines the value of assets, including property and automobiles, for insurance purposes.