The financial ratio intended to measure the effectiveness with which management has utilized the resources of the business,regardless of how these resources are financed,is:
A)Gross profit rate.
B)Current ratio.
C)Return on assets.
D)Return on equity.

Question

Quizplus · Accepted Answer

Return on assets (ROA) is the financial ratio that measures the effectiveness of management in utilizing the resources of the business, regardless of how these resources are financed. It is calculated by dividing net income by total assets. ROA is a good measure of how efficiently management is using the assets of the business to generate profits.

The Financial Ratio Intended to Measure the Effectiveness with Which