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

The Return on Assets Ratio Measures