Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A) Accumulated depreciation is a contra account in the income statement.
• B) The current ratio is current assets divided by current liabilities.
• C) Book value of a building is the cost less the current year's depreciation.
• D) Retained earnings is the accumulated profit plus the accumulated dividends paid.

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Definitions:

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment relative to its cost.

Variable Costs

Costs that change in proportion to the good or service that a business produces.

Controllable Fixed Costs

Controllable fixed costs are expenses that a company has some degree of control over in the short term, despite them generally being fixed for a certain period.

Planned Objectives

Strategically set goals that an organization aims to achieve within a specific timeframe.