The Return on Assets Is Calculated As

question 33

Multiple Choice

The return on assets is calculated as:

• A) Net Income divided by total assets.
• B) Net Income divided by average total assets.
• C) Net Income divided by ending total assets.
• D) Ending total assets divided by net income.

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Definitions:

NSF Check

A check that cannot be honored because the account on which it is drawn lacks sufficient funds, standing for "non-sufficient funds."

Outstanding Checks

Checks that have been issued and recorded in accounting records but have not yet been cashed or cleared by the bank.

Bank Reconciliation

Aligning the cash account figures in a business's financial records with the relevant details found in a bank statement.

Bank Statement Balance

The ending account balance in a bank statement, representing the amount of money available in an account at the end of a statement period.