Net Income Divided by Average Total Assets Is Equal to The

question 110

Multiple Choice

Net income divided by average total assets is equal to the:

• 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:

Reasonable Level

A term often used in finance and economics to describe an equilibrium or average measure that is considered acceptable under given conditions.

Capital Budget

The planning process used by a company to determine whether its long-term investments or projects are worth pursuing.

Dividend Per Share

The sum of declared dividends for every share of common stock issued, divided by the number of outstanding shares.

Outstanding Shares

The total shares of stock that are currently owned by shareholders, including restricted shares owned by company insiders.