The return on assets ratio measures how well
A)current assets are used to provide cash for the purchase of long-term assets.
B)a company's assets create sales revenue.
C)a company manages its assets.
D)assets have been employed in conducting the business.

Question

Quizplus · Accepted Answer

The return on assets ratio indicates how efficiently a company uses its assets to generate profit, reflecting how well the assets have been employed in conducting the business.

The Return on Assets Ratio Measures How Well