If an auditor was interested in determining a client firm's ability to generate income from its investments, the best ratio to calculate would be _________.
A)the times interest earned
B)debt to assets ratio
C)return on assets
D)return on equity

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is the best ratio to calculate when an auditor wants to determine a client firm's ability to generate income from its investments, as it measures how efficiently a company can manage its assets to produce profits during a period.

If an Auditor Was Interested in Determining a Client Firm's