Multiple choice general knowledge

Return On Assets is

  1. Net income ? Total Assets

  2. A measure of the return generated by the assets

  3. A and B

  4. A ratio that measures the return to the organization’s shareowners

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Return On Assets (ROA) is calculated as Net Income divided by Total Assets, which measures how efficiently a company uses its assets to generate earnings. The correct answer combining both the formula and the conceptual meaning is appropriate. Option D describes Return on Equity, not ROA, making it incorrect.