Concept introduction:
Return on Assets: Return on Assets (ROA) is the earnings generated by the business/management on the investment or assets /invested into a business. It indicates the efficiency of the business/ management by calculating the percentage of return, the business/management gives on the investment made. The calculation is done by dividing a company’s annual earning by its total assets. The return on assets is also known as
(1)To determine: For Coca-cola and Pepsico, calculate the return on assets.
(2) To write: Compare the sales of the two companies and find which company is more successful
(3) To write: Compare the two companies returning net income from asstes and find which company is more successful
(4)To write: In short explain in which company you will invest your money.
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Fundamental Accounting Principles
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