The Rate of Return on Assets Relates the Results of Operating

Multiple Choice

The rate of return on assets relates the results of operating performance to the investments of a firm without regard to how the firm financed those investments.The ratio is calculated as follows:

A) $\frac{\text {Net Income + Interest Expense Net of Income Tax Savings }}{\text {Average Total Assets }}$
B) $\frac{\text { Net Income}}{\text {Average Total Assets }}$
C) $\frac{\text {Net Income + Interest Expense }}{\text {Average Total Assets }}$
D) $\frac{\text {Net Income + Interest Expense Net of Income Tax Savings }}{\text { Ending Total Assets}}$
E) $\frac{\text {Net Income }}{\text { Ending Total Assets}}$