When net income before taxes and interest is $52,000 and total assets equal $205,000,the rate of return on total assets is 25.4%.

Name: When net income before taxes and interest is $52,000 and total assets equal $205,000,the rate of return on total assets is 25.4%.
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

To calculate the rate of return on total assets, divide the net income before taxes and interest by the total assets and multiply by 100:

($52,000 / $205,000) x 100 = 25.4%

Therefore, the statement is true.

When Net Income Before Taxes and Interest Is $52,000 and Total