When calculating the ROA, the average asset balance is used as the denominator. When calculating the debt

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When calculating the ROA, the average asset balance is used as the denominator. When calculating the debt ratio, the year-end asset balance is used as the denominator. Explain the rationale for using average asset figures for some ratios and year-end asset figures for others.
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Accounting Business Reporting For Decision Making

ISBN: 9780730302414

4th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver

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