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Match the following: Match each of the options above to the items below. 1 Return on assets 2 Asset turnover 3 Big bath 4

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Match the following: Match each of the options above to the items below. 1 Return on assets 2 Asset turnover 3 Big bath 4 Impairment 5 Profit margin Net income divided by average total assets; measures the amount of net income generated for each dollar invested in assets. Net income divided by net sales; indicates the earnings per dollar of sales. Net sales divided by average total assets; measures the sales per dollar of assets invested. Recording all losses in one year to make a bad year even worse. Occurs when the future cash flows (future benefits) generated for a long-term asset fall below its book value (cost minus accumulated depreciation).

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