The calculation of the return on total assets ratio would use all of the following except
A) average stockholders' equity.
B) total assets.
C) average total assets.
D) net sales.

Question

Quizplus · Accepted Answer

The return on total assets ratio is calculated using net income, total assets, or average total assets, and net sales, but it does not use average stockholders' equity, which is more relevant for calculating return on equity (ROE).

The Calculation of the Return on Total Assets Ratio Would