Isaiah Company Has Net Income Before Interest and Taxes of $825,000;beginning

question 117

Multiple Choice

Isaiah Company has net income before interest and taxes of $825,000;beginning total assets of $2,100,000;and ending total assets of $2,500,000.Isaiah's return on total assets is:

• A)33.0%.
• B)11.2%.
• C)3)1%.
• D)31.3%.

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Definitions:

Production Possibilities Frontier

Represents the maximum potential output of two goods or services an economy can produce when all resources are used efficiently, graphically illustrating opportunity costs and economic efficiency.

Outputs

The goods or services produced by a company or an economy over a certain period of time.

Increasing Opportunity Costs

A principle stating that as the production of a good increases, the opportunity cost of producing an additional unit of this good also increases.

Bowed-Out Shape

Describes a concave production possibilities frontier that reflects increasing opportunity costs as production of one good is increased.