Return on asset is a term often used to express income earned on capital invested in a business unit. A company’s return on asset increases if Sales increase by the same peso amount as expenses and total assets Sales remain the same and expenses are reduced by the same pace amount the total assets increase Sales decrease by the same peso amount the expenses increase Net profit margin on sales increases by the same percentage as total assets
Return on asset is a term often used to express income earned on capital invested in a business unit. A company’s return on asset increases if Sales increase by the same peso amount as expenses and total assets Sales remain the same and expenses are reduced by the same pace amount the total assets increase Sales decrease by the same peso amount the expenses increase Net profit margin on sales increases by the same percentage as total assets
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 26MCQ
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Question
Sales increase by the same peso amount as expenses and total assets
Sales remain the same and expenses are reduced by the same pace amount the total assets increase
Sales decrease by the same peso amount the expenses increase
Net profit margin on sales increases by the same percentage as total assets
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