Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets
Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 20MC: Which of the following is a measurement of earnings that represents the profit before interest,...
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Which of the following is the correct formula for calculating rate of return on total assets?
(Net income
minus−
Interest expense) / Average total assetTotal equity / Total assets
(Net income + Interest expense) / Average total assets
(Net income
minus−
Interest expense) / Total assetsExpert Solution
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