Asked by
Jeremiah Calbario
on Oct 16, 2024Verified
Dawson Electronic Services had revenues of $80,000 and expenses of $50,000 for the year.Its assets at the beginning of the year were $400,000.At the end of the year assets were worth $450,000.Calculate its return on assets.
A) 7.1%.
B) 7.5%.
C) 6.7%.
D) 20.0%.
E) 18.8%.
Return on Assets
A measure of how effectively a company is using its assets to generate earnings.
Revenues
Revenues are the total amount of money received by a company for goods sold or services provided during a specific period.
Expenses
Costs incurred in the process of earning revenue, often categorized into operating and non-operating expenses.
- Determine and scrutinize the return on assets to measure a corporation's profitability vis-à-vis its total assets.
Verified Answer
JN
Learning Objectives
- Determine and scrutinize the return on assets to measure a corporation's profitability vis-à-vis its total assets.