Question

If my return on assets ratio is 3, that means that every dollar I have invested...

If my return on assets ratio is 3, that means that every dollar I have invested in assets is creating $3 worth of income.

True
False
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Answer #1

ANSWER=

TRUE

Explanation:-

Return on assets ratio :-

Formula:-

= Net Income / Avearge Total assets

SInce, ROA Ratio indicates/measures how effectively an Company or an organisation is earn return on its investment in their Assets.

Thus, it defines or this istrue that it measures that what you earn on every invested amount($) in assets.

Therefore,

In this Case:- The Return on Assets is 3 which indicates that every dollar you invested in assets is creating $3 Worth of income.

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