Assuming No Changes in Other Variables, Which of the Following

question 53

Multiple Choice

Assuming no changes in other variables, which of the following would decrease ROA?

• A)A decrease in the effective tax rate
• B)An increase in interest expense
• C)An increase in average assets
• D)A decrease in average assets

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Definitions:

Marshaling of Assets

A legal principle requiring the fair and orderly distribution of a debtor's assets among creditors, especially when the debtor has multiple debts secured by the same assets.

UPA

Stands for Uniform Partnership Act, which is a statute that governs partnership formation and operation in the United States, aiming to provide a consistent legal framework for businesses operating as partnerships.

RUPA

Revised Uniform Partnership Act, an updated version of the Uniform Partnership Act that includes changes to accommodate modern business practices.

Obligations

Duties or commitments that individuals or organizations are legally bound to fulfill, such as contractual agreements or debt repayment.