The Return on Assets Ratio Usually Is Computed As

question 97

Multiple Choice

The return on assets ratio usually is computed as:

• A)Net sales divided by average total assets.
• B)Gross profit divided by average total assets.
• C)Operating income divided by average total assets.
• D)Net income divided by average total assets.

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Definitions:

Bond Pricing Equation

A formula used to determine the fair price or value of a bond based on its expected cash flows, the face value, and the required rate of return.

Bond Value

The present worth of a bond's future interest payments and principal repayment, discounted at the market rate of interest.

Face Amount

The nominal or dollar value printed on a financial instrument, such as a bond or insurance policy.

Specified Rate

A predetermined interest rate detailed in a financial agreement or instrument.