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When Computing the Return on Total Assets, the Interest Expense

question 176

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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:

HR Activities

Actions carried out by the Human Resources department, including recruiting, training, and managing employee relations.

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectations, often a critical indicator of consumer loyalty and product/service quality.

Improving Service Quality

The process of making enhancements to the aspects of service that customers find valuable and important.

Stakeholder Group

A collection of individuals or organizations that have an interest or concern in the decisions and activities of a business.

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