Global Electronics Company the Computer Division of Global Electronics Company

question 61

Multiple Choice

Global Electronics Company The Computer Division of Global Electronics Company had the following financial data for the year:
Refer to Global Electronics Company.If expenses increased by $20,000 in the Computer Division,

• A)return on investment would decrease.
• B)residual income would increase.
• C)the target rate of return would decrease.
• D)asset turnover would decrease.

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Definitions:

VISA

A global payment technology company that facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards.

Multiple-Step Income Statement

A form of income statement that contains several sections, subsections, and subtotals.

Income from Operations

The earnings generated from the day-to-day activities of a business, excluding income and expenses from non-operational sources.

Net Income

The net income of a company, which is calculated by deducting all expenses and taxes from the total revenue.