Operating return on assets captures the effect of taxes and financing costs,and hence provides the broadest possible measure of profitability.

Name: Operating return on assets captures the effect of taxes and financing costs,and hence provides the broadest possible measure of profitability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating return on assets focuses on the operating income generated from the assets, excluding the effects of taxes and financing costs, to measure the efficiency of asset use in the core business operations.

Operating Return on Assets Captures the Effect of Taxes and Financing