The ratio that measures a company's success in using its assets to earn income for the persons who finance the business is the:
A)debt ratio.
B)leverage.
C)times-interest-earned ratio.
D)rate of return on total assets.

Question

Quizplus · Accepted Answer

The rate of return on total assets measures how efficiently a company is utilizing its assets to generate profits for its financiers. It indicates the profitability of the business and is an important measure for stakeholders to evaluate the company's financial performance. A higher rate of return on total assets is desirable as it shows that the company is using its assets effectively to generate profits.

The Ratio That Measures a Company's Success in Using Its