Unit 2 Chapter 16 (Broke Version) Flashcards
1
Q
Formula for ROA
A
Net profit/ average total assets x 100
2
Q
Asset turnover formula
A
Net sales/average total assets
3
Q
Formula for depreciation rate
A
Depreciation expense/ historical cost x 100
4
Q
Formula for depreciation expense
A
hc less RV / USEFUL LIFE
5
Q
Asset turnover
A
An efficiency indicator that assesses how productively a business has used its assets to earn revenue
6
Q
Carrying value
A
The value of a non current asset that is yet to be consumed/allocated as an expense, plus any residual value
7
Q
Return on assets
A
A profitability indicator that assesses how effectively a business has used its assets to earn profit
