Question: The formula for return on investment (also known as return on assets) is net income divided by assets. This ratio communicates to management: That the

The formula for return on investment (also known as return on assets) is net income divided by assets. This ratio communicates to management:

That the balance sheet is out of balance with the income statement the higher the ratio becomes

That net income is equal to the total of the company's assets

The profitability of the company

The need for management to increase the company's debt by selling long-term assets

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