New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Assuming no change in other variables, which of the

    following would decrease Return on Assets?
    A a decrease in tax rate Correct Answer Incorrect Answer
    B a decrease in interest expense Correct Answer Incorrect Answer
    C an increase in average assets Correct Answer Incorrect Answer
    D an increase in net income Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Return on assets = Net Income/Average total assets So, an increase in average assets, keeping other variables unchanged, will decrease the overall ratio. Rest of the choices will actually increase the said ratio.

    Practice Next

    Relevant for Exams: