Suppose Honest Rob's Used Cars Buys a Used Car for $2000

question 46

Multiple Choice

Suppose Honest Rob's Used Cars buys a used car for $2000 and resells it for $3000. The result of Honest Rob's transactions is to

• A)decrease the value of national income by $3000.
• B)decrease the value of national income by $1000.
• C)increase the value of national income by $3000.
• D)increase the value of national income by $1000.
• E)leave the value of national income unchanged.

Master the calculation of current and quick (acid-test) ratios to assess a company's short-term liquidity.

Learn how to compute and interpret the payout ratio and its significance in dividend policy analyses.

Grasp the importance of the accounts receivable turnover ratio in evaluating a company's efficiency in managing receivables.

Understand the concept of leverage (trading on equity) and its impact on shareholder returns.

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A highly contagious viral infection causing an itchy, blister-like rash on the skin.