The segment return on assets:
A) Reflects on the profitability of a segment.
B) Is difficult to calculate because companies with traded stock are not required to report segment information.
C) Is applicable whether segments earn profits or losses.
D) Is calculated as segment sales divided by segment average assets.
E) Is calculated as segment average assets divided by segment operating income.

Question

Quizplus · Accepted Answer

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

The Segment Return on Assets