US CMA Part 2 · Chapter 2 · Question 2 of 15
Norland Foods earned net income of $288,000. Its average total assets for the year were $3,200,000. What is its return on assets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 9.0%
Explanation
Return on assets = net income / average total assets = $288,000 / $3,200,000 = 9.0%. Return on assets measures how effectively management uses the company's total resources to generate profit.
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