
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.
Answer:
Computation of return on assets:Formula:
(2) To write:
Compare the sales of the two companies and find which company is more successful

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Chapter 1 Solutions
Connect Access Card For Fundamental Accounting Principles
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