Net Income Divided by Average Total Assets Is

question 158

Multiple Choice

Net income divided by average total assets is:

• 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:

Reversing Entry

An accounting entry that is made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.

Adjusting Entries

Bookkeeping adjustments made before the preparation of financial statements to account for accruals and deferrals not recorded through daily transactions.

Optional

Optional refers to a choice or item that is not mandatory and can be selected based on preference or requirement.