When calculating return on net operating assets, deferred taxes should be deducted from the denominator.

Name: When calculating return on net operating assets, deferred taxes should be deducted from the denominator.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deferred taxes are not deducted when calculating return on net operating assets (RNOA); instead, RNOA focuses on operating assets and liabilities, excluding tax-related items unless they directly relate to the operating activities.

When Calculating Return on Net Operating Assets, Deferred Taxes Should