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  3. management is responsible for acquiring assets and

management is responsible for acquiring assets and using assets economically. Return on total assets is...

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Accounting

management is responsible for acquiring assets and using assets economically. Return on total assets is a ratio that measures how wisely management is using assets. Return on total assets is calculated by dividing net income before interest but after taxes by average total assets. It is important to note that you will need to calculate these numbers they are not shown on the financial statements. Why is it preferred to use average total assets rather than the ending balance? How do you calculate average total assets

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