Section 9
Reporting and Analyzing Assets
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
3 concepts
Reporting Assets
A business must report an asset's acquisition cost, how it is depreciated, any subsequent expenditures tied to it, and how it is disposed.
Return on Assets
The Return on Total Assets ratio measures how effectively a company uses its assets to generate its net income.
Asset Turnover Ratio
The asset turnover ratio is a measure of how well a business is using all of its assets to generate sales.