Which of the Following Statements Correctly Describe the Effect of Accruing

question 72

Multiple Choice

Which of the following statements correctly describe the effect of accruing interest revenue at year-end?

• A) Income from operations increases.
• B) The net profit margin ratio does not change.
• C)The asset turnover ratio increases.
• D)The return on assets ratio is affecteD.The accrual of interest revenue increases both total assets and net income, which are the two components of return on assets.

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