Match the term with its definition.
-A measure of a firm's profitability relative to the amount of its assets, determined by dividing operating profits by total assets
A)accrual-basis accounting
B)cash
C)cash-basis accounting
D)depreciable assets
E)depreciation expense
F)financial statements
G)inventory
H)liquidity
I)operating profit margin
J)return on assets
K)return on equity

Question

Quizplus · Accepted Answer

Return on assets (ROA) is a financial ratio that measures a company's profitability in relation to its total assets. It is calculated by dividing the operating profit (or net income) by the total assets to see how efficiently a company is using its assets to generate profit.

Match the Term with Its Definition