The return on total assets is computed by dividing

Name: The return on total assets is computed by dividing
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The return on total assets (ROTA) is a profitability ratio that measures a company's ability to generate income from its assets. It is computed by dividing net income by average total assets. This is because using an average of the beginning and ending total assets provides a more accurate representation of the assets used to generate income during the period. Therefore, the best choice is D.

The Return on Total Assets Is Computed by Dividing