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Computing and Interpreting Return on Assets

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following is an asset for a company?

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1. Return on Assets measures how well a company uses its assets to generate _____.

2.

Rinate Company Ltd has the following details available:

Net Income is $123,200

Total asset valued at $258,600

Total Liabilities valued at $25300

Total Equity valued at $40000

Calculate the Return on Assets.

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About This Quiz & Worksheet

This quiz and corresponding worksheet assess your understanding of ROA. Practice questions help you calculate ROA and interpret the findings.

Quiz & Worksheet Goals

Use these assessment tools to assess your knowledge of:

  • The definition of ROA
  • The use of ROA
  • The formula to calculate ROA
  • How ROA measures a company's use of its assets

Skills Practiced

This quiz and worksheet help you practice the following skills:

  • Making connections - use understanding of financial statements
  • Interpreting information - verify that you can read information regarding what the formula of ROA and interpret it correctly
  • Information recall - access the knowledge you've gained regarding ROA

Additional Learning

To learn more about profitability in business, review the assessment Computing and Interpreting Return on Assets. This lesson covers:

  • ROA defined
  • ROA computation
  • ROA interpretation
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