Which of the following is not a component of return on assets (ROA)?
A)Total assets
B)Cost of goods sold
C)Sales
D)Leverage

Name: Which of the following is not a component of return on assets (ROA)? A)Total assets B)Cost of goods sold C)Sales D)Leverage
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Question

Quizplus · Accepted Answer

ROA is calculated as Net Income divided by Total Assets, focusing on how efficiently a company uses its assets to generate profit. It does not directly incorporate leverage, which relates to the amount of debt used to finance the company's assets.

Which of the Following Is Not a Component of Return