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NEW QUESTION 52
Below is the income statement and balance sheet for a retail corporation.
What is the corporation’s return on equity in Year 2?
- A. 48%
- B. 39%
- C. 23%
- D. 26%
Answer: A
NEW QUESTION 53
Radal inc. currently has three product lines: stationery computer supplies, and printer cartridges Based on the following information, the company is considering whether to drop the printer cartridge line.
- A. drop the printer cartridge product line as this will result in a $3 000 increase m net income
- B. continue the printer cartridge product line to avoid an additional $3.000 decrease in net income
- C. drop the printer cartridge product line as this will result in a $6,000 increase m net income
- D. continue the printer cartridge product line to avoid an additional $6.000 decrease in net income
Answer: B
NEW QUESTION 54
Custom Ceramics produces two hand-painted items a large bowl and a large platter. Relevant information for each of these items is shown below
- A. The company should produce only bowls because the contribution margin per bowl is higher.
- B. The company should produce only platters because the contribution margin per painting hour is higher
- C. The company should produce only platters because the variable cost per platter is lower
- D. The company should produce only bowls because the sales price per Bowl is higher
Answer: B
NEW QUESTION 55
When evaluating a capital Budgeting proposal, an advantage of using the payback method is that Bits process
- A. incorporates all of the project’s cash inflows and outflows
- B. assesses the liquidity of the project.
- C. objectively determines if the proposal should be accepted or rejected.
- D. considers the time value of money.
Answer: B
NEW QUESTION 56
……
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