Which of the Following Statements Is Incorrect

question 113

Multiple Choice

Which of the following statements is incorrect?

• A)Purchasing fixed assets through equity financing decreases total asset turnover.
• B)Accruing an expense decreases earnings per share.
• C)The return on equity ratio increases when treasury stock is purchased.
• D)The purchase of fixed assets will cause the total asset turnover to increase.

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Definitions:

Perfection by Filing

A legal process to protect a secured interest in a debtor's property by filing appropriate documents with a governmental office or registry.

Perfection

In legal and financial contexts, it often relates to the process of securing a security interest in collateral, ensuring priority over other claims.

Financing Statement

A document filed by a creditor to indicate a security interest in the property of a debtor, used in securing loan agreements.

Perfection

In legal and finance contexts, the act of securing a priority interest in collateral to protect a secured loan or transaction.