The segment return on assets:
A) Can only be determined for international companies.
B) Reflects the profitability of a segment.
C) Is difficult to calculate because companies with traded stock are not required to report segment information.
D) Is calculated as segment average assets divided by segment operating income.
E) Is calculated as segment sales divided by segment average assets.

Question

Quizplus · Accepted Answer

The segment return on assets reflects the profitability of a segment by showing how efficiently the segment uses its assets to generate earnings.

The Segment Return on Assets