Net income divided by average total assets; measures the

amount of net income generated for each dollar invested

in assets.

Net income divided by net sales; indicates the earnings per

dollar of sales.

Net sales divided by average total assets; measures the

sales per dollar of assets invested.

Occurs when the future cash flows $($future benefits$)$

generated for a long$-$term asset fall below its book value

$($cost minus accumulated depreciation$).$

Reporting all losses in one year to make a bad year even

worse.