Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
9th Edition
ISBN: 9781260260779
Author: Wild
Publisher: MCG
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Chapter 13, Problem 12DQ
Summary Introduction

Concept Introduction:

Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:

ROI= Operating income  ÷Average total assets

To discuss: the reason for difference between return on total assets and return on common stockholder’s equity.

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