Net Income Divided by Average Total Assets Is

question 190

Multiple Choice

Net income divided by average total assets is:

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

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Definitions:

Long-Term Investments

Investments made with the intention to hold for more than a year, including stocks, bonds, or real estate, aimed at achieving higher returns over time.

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and investments in other firms.

Operating Activities

Activities that relate directly to the operation of the business, including production, sales, and other functions that generate revenue and expenses.

Investments

Investments are assets or items acquired with the goal of generating income or appreciation, including stocks, bonds, real estate, or other vehicles of value.