The return on assets is calculated by Oa. dividing net income before taxes and interest expense by average total asset Ob. dividing net income before taxes and interest expense by average current assets Oc. dividing average total asset and interest expense by net income taxes Od. dividing interest expense by average total asset and average current assets

The return on assets is calculated by Oa. dividing net income before taxes and interest expense by average total asset Ob. dividing net income before taxes and interest expense by average current assets Oc. dividing average total asset and interest expense by net income taxes Od. dividing interest expense by average total asset and average current assets

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Return on assets is equal to: Multiple Choice Net income divided by average total assets. Net income divided by average long-term assets. Net income divided by long-term assets. O Average total assets divided by net income.
Define these. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales
Perform the calculation for each ratio, and provide an explanation of the result. a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total assets.c. total assets by long-term liabilities.d. long-term liabilities by total assets.
The ratio of net sales to average total assets is calculated as: A Current Assets/Current Liabilities. B Average Total Assets/Net Sales. Net Sales/Total Assets. D Net Sales/Average Total Assets.
Which items are interest charges/interest expense in the income statement below?
Compute for total current assests, total uncurrent assets, total current liabilities and total uncurrent liabilities
Which are the total interest expense in the income statement?
The numerator of the return on total assets is a. net income b. net income plus tax expense c. net income plus interest expense d. net income minus preferred dividends
Answer the following question a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
Which of the following is used when computing for the accounting rate of return (ARR)? a. Income before depreciation but after taxes. b. Income after depreciation and taxes. c. Income before depreciation and taxes d. Income after depreciation but before taxes.