Check all the statements that are true about the measure - Return on Assets. 1) When comparing similar companies, the company with the higher return on assets is more successful based on that one measure. 2) Return on assets measures how well or efficiently the business used its assets by relating the profit earned to the average assets employed to generate those earnings. 3) Since net income (the numerator for return on assets) is related to a period of time, it is important to match the denominator (assets) also to a period of time. For that reason, the assets at the beginning of the period are added to the assets at the end of the period. Then that total amount is divided by two to get an average asset amount for the denominator. 4) Return on assets is a measure that common sizes the relationship of profits to assets. It is called common-size because it makes companies within an industry or the same company within different time periods, comparable irrespective of size. Ratios such as Return on Assets, use proportions rather than the actual numbers as the means of comparison.