Which of the following describes the return on assets ratio?
A) Average total assets divided by net income
B) Net income plus income tax expense divided by average total assets
C) Average total assets divided by net sales
D) Net income divided by average total assets

Question

Quizplus · Accepted Answer

The return on assets ratio is calculated by dividing the net income by the average total assets, indicating the amount of profit generated by each dollar of assets invested in the business.

Which of the Following Describes the Return on Assets Ratio