Which of the Following Formulae Is Used to Calculate Average

question 122

Multiple Choice

Which of the following formulae is used to calculate average total assets for the return on assets ratio?

• A) Average total assets = (Beginning total assets + Ending total assets) × 2
• B) Average total assets = (Beginning total assets - Ending total assets) × 2
• C) Average total assets = (Beginning total assets - Ending total assets) / 2
• D) Average total assets = (Beginning total assets + Ending total assets) / 2

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Definitions:

Engages In Fraud

The act of deliberately deceiving another individual or entity to gain an unfair or unlawful advantage.

Limited Liability Company

Is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Personally Liable

Being directly responsible for an obligation or debt, where one's personal assets can be used to satisfy the liability.

Unlimited Liability

A type of business ownership where the owners are personally responsible for all of the debts of the business, with no limit to this liability.