Which two ratios demonstrate how well a firm has done in making money for a reporting period?
A . Return on assets = net assets/total assets Return on equity = net income/shareholder equity
B. Return on assets = net income/total assets Return on equity = net income/shareholder equity
C. Return on assets = net income/total assets Return on equity = net outgoings/shareholder equity
D. Return on assets = net income/total equity Return on equity = net income/shareholder equity
Answer: B
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