A Company Reported Net Income of $100,000 and Average Total

question 31

Short Answer

A company reported net income of $100,000 and average total assets of $425,000.Calculate its return on total assets.

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Definitions:

Sales Offer

A promotion or deal designed to attract customers by offering products or services at a reduced price or with added incentives.

Cash

Money in the form of coins or notes, which constitutes the company's liquid assets that are readily available for transactions.

Services

Economic activities offered by one party to another, often involving professional assessment or physical help, that do not result in the ownership of anything.

Accounting Principles

Accounting principles are the standardized guidelines and rules, such as GAAP (Generally Accepted Accounting Principles) in the U.S., that govern how financial transactions and records are reported.