Which of the Following Statements Is Correct

question 59

Multiple Choice

Which of the following statements is correct?

• A) Income from operations increases when common stock is sold for more than par value.
• B) The accrual of research and development costs does not affect the net profit margin ratio.
• C)The payment of an accrued liability decreases asset turnover.
• D)The declaration and payment of a cash dividend increases the return on assets ratio.

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Definitions:

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.

Amylase

An enzyme produced primarily by the pancreas and salivary glands that helps in the digestion of carbohydrates by breaking down starch into sugar.

Anorexia

An eating disorder characterized by an obsessive fear of gaining weight and a refusal to maintain a healthy body weight.

Cholecystectomy

A surgical procedure to remove the gallbladder.