Return on assets can best be explained as:
A) how much working capital is provided by the stockholders.
B) how much income each dollar of assets generates.
C) how much income each dollar of working capital assets generates.
D) how many dollars of sales each dollar of assets generates.

Question

Quizplus · Accepted Answer

Return on assets (ROA) measures how efficiently a company generates net income from its total assets. It indicates how much income each dollar of assets generates, reflecting the company's ability to use its assets to create profits.

Return on Assets Can Best Be Explained As