Question

Net income divided by average total assets is:

Question 50 options:

	Profit margin.
	Total asset turnover.
	Return on total assets.
	Days' income in assets.
	Current ratio.

Answer 1

Solution : Option C (Return on total assets) is the correct answer.

Return on total assets = Net income / Average total assets

Return on total assets measures the amount of net income generated for each dollar invested in assets.

Conclusion : From the above we can understand that OPTION C satisfies the given requirement in the question whereas remaining options A,B,D,E do not satisfy the given requirement in question.

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