A company earns profit after tax of Rs. 240,000 on average total assets of Rs. 2,000,000. What is its return on assets?
Correct answer: C. 12%
- A. 8%
- B. 10%
- C. 12%
- D. 15%
Explanation
Return on assets equals profit after tax divided by average total assets, multiplied by 100. The calculation is Rs. 240,000 divided by Rs. 2,000,000, giving 12%.
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