Assuming no changes in other variables, which of the following would decrease ROA?
A)A decrease in the effective tax rate
B)An increase in interest expense
C)An increase in average assets
D)A decrease in average assets

Question

Quizplus · Accepted Answer

An increase in average assets would decrease ROA (Return on Assets) if net income remains constant, as ROA is calculated as net income divided by average assets.

Assuming No Changes in Other Variables, Which of the Following