Solved

The Following Question Relates to PQR,which Has the Following Ratios

Question 16

Multiple Choice

The following question relates to PQR,which has the following ratios: return on assets, (ROA) 10 per cent;return on equity (ROE) 12 per cent;and current ratio (CR) of 1.8:1.
-Additional credit sales of $2 million (cost price $1.5 million) are made.This transaction will:


A) increase ROA,ROE and CR.
B) increase ROA and ROE but not CR.
C) increase ROA and CR but not ROE.
D) increase ROA,increase ROE and decrease CR.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions