Which of the Following Could Cause Return on Net Operating

question 36

Multiple Choice

Which of the following could cause return on net operating assets to increase, all other things equal?

• A)A decrease in interest rate on debt
• B)Increase in days accounts receivable are outstanding
• C)Increase in inventory turnover
• D)Decrease in gross margin

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Definitions:

Guidelines

Recommended principles or practices that serve as a framework or advice for conduct or action.

Tangible Gain

A clear and measurable benefit or advantage, often of a financial nature.

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Ethical Dilemmas

Ethical Dilemmas are situations in which a person has to choose between two options, neither of which resolves the situation in an ethically acceptable manner.