When Computing the Return on Total Assets, the Interest Expense

question 176

True/False

When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

---

Definitions:

Francs

A former currency unit used in France and several other countries before the adoption of the euro, also still used in some parts of Switzerland and Liechtenstein.

Exchange Rate

The exchange rate is the price at which one currency can be exchanged for another, affecting imports, exports, and international investments.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

Euros

The official currency of the eurozone, which is used by 19 of the 27 European Union countries.