Examlex

Solved

The Rate of Return on Total Assets Is Calculated by First

question 38

True/False

The rate of return on total assets is calculated by first subtracting interest expense from net income and then dividing the result by average total assets.


Definitions:

Regulatory Agency

A governmental organization tasked with creating and enforcing rules to regulate and supervise specific industries or activities.

Internal Revenue Service

The federal agency responsible for enforcing U.S. tax laws and collecting taxes.

Creditor

An entity (person or institution) that lends money or extends credit to another entity.

Investor

A person or organization that invests money anticipating financial gains in return.

Related Questions