1.
Concept Introduction:
The relation of assets, liability, and equity is reflected in the accounting equation. Assets are resources a company owns or controls, whereas liabilities are what a company owes to outsiders and equity is the claims of the owners on the assets of the company.
The number of assets invested in Company A in the current year.
2.
Concept Introduction:
Return on assets:
The return on assets provides a measure of the profitability of assets. To derive this ratio, the net income is divided by the average total assets.
The return on assets during the current year for A.
3.
Concept Introduction:
Accounting equation:
The relation of assets, liability, and equity is reflected in the accounting equation. Assets are resources a company owns or controls, whereas liabilities are what a company owes to outsiders and equity is the claims of the owners on the assets of the company.
The total expenses for A during the current year.
4.
Concept Introduction:
Return on assets:
The return on assets provides a measure of the profitability of assets. To derive this ratio, the net income is divided by the average total assets.
The comparison of current year return on assets with competitors' return on assets of 10%.
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