Return of assets = Profit /(average total assets). If obsolete inventory is written down, Dr 'Inventory write down' (expense), Cr Inventory, which is incorrect:  'Return on assets' will increase 'profit' will decrease The impact on the numerator is proportionally greater 'ave total assets' will decrease

Return of assets = Profit /(average total assets). If a new item of equipment is revalued up during the year for the first time, which is incorrect:  Return on assets' remains unchanged 'ave total assets' will increase 'Other comprehensive income' will increase 'profit' will decrease due to increased depreciation

The return on total assets assesses:Group of answer choiceshow efficiently a business has used its economic resourcesthe return for ownersthe mix of debt and equity in a businesshow many assets a business needs to replace

The ratio, return on assets, is the product of the:Group of answer choicesdebt ratio and the equity ratio.asset turnover ratio and the current ratio.profit margin and the asset turnover ratio.asset turnover ratio and the days inventory ratio.

The product of average total assets and the asset turnover ratio isSelect answer from the options belowprofit.profit margin.return on assets.net sale

If a business has a return on equity ratio of 25%, then this meansMultiple Choicethe business is generating $0.75 profit on each dollar it spent on inventory.total liabilities must be 25% of the value of the business.the owners made 25% profit from each dollar invested in the company.the return on equity ratio does not represent any of these answers.the business owes 25% of its profits to its employees.