The ____________measures the overall effectiveness of management in generating profits with its available assets.
A) return on equity
B) return on total assets
C) price/earnings ratio
D) net profit margin

Question

The ____________measures the overall effectiveness of management in generating profits with its  available assets.
A) return on equity
B) return on total assets
C) price/earnings ratio
D) net profit margin

Quizplus · Accepted Answer

Return on total assets is the best choice because it reflects how efficiently a company is able to generate profits from all of its available assets, including both equity and debt financing. It takes into account both the income statement and balance sheet, providing a more comprehensive view of a company's performance.

The ____________Measures the Overall Effectiveness of Management in Generating Profits