Which of the Following Is Used to Calculate Average Assets

question 79

Multiple Choice

Which of the following is used to calculate average assets for the return on assets calculation?

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

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Definitions:

Economic Profit

The surplus obtained from total revenues minus both explicit (out-of-pocket) and implicit (opportunity) costs of all resources employed.

Competitive Firm

A company that operates in a market with many buyers and sellers, where no single entity can influence prices on its own.

Optimal Output

The level of production that maximizes a firm's profit, determined by the point where marginal cost equals marginal revenue.

Cost Curves

Graphs that show the relationship between the cost of producing a good or service and the output level.