Return on assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Return on assets is equal to:
Multiple Choice
Net income divided by average total assets.
Net income divided by average long-term assets.
Net income divided by long-term assets.
O Average total assets divided by net income.
Expert Solution

Step 1
Return on assets is computed as net income upon total assets of the company.
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