If Sales and Expenses Both Rise by $100,000

question 187

Multiple Choice

If sales and expenses both rise by $100,000

• A)residual income will increase.
• B)return on investment will increase.
• C)return on investment will be unchanged.
• D)asset turnover will decrease

---

Definitions:

Maturity

The time when a financial instrument, such as a bond or loan, reaches its due date and is to be paid off.

Compound-interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.

GIC

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period, often issued by banks or trust companies.

Maturity Value

The sum of money an investor receives at the conclusion of a fixed-term investment, which encompasses both the original investment and the earned interest.