The Following Information Was Extracted from the Accounting Records of Florissant

question 24

Multiple Choice

The following information was extracted from the accounting records of Florissant Valley Motors: $\begin{array}{lcc} & \text { Prior Year } & \text { Current Year } \\\text { Margin } & 6.0 & 5.0 \\\text { Tumover } & 2.5 & 3.2\end{array}$ Florissant Valley's ROI for the current year is

• A)greater than for the prior year due to the change in turnover.
• B)greater than for the prior year due to the change in margin.
• C)less than for the prior year due to the change in turnover.
• D)less than for the prior year due to the change in margin.

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Definitions:

Nominal Interest Rate

The stated interest rate of an investment or loan without accounting for inflation or compounding interest effects.

Nominal Interest Rate

The stated interest rate on a loan or financial instrument, not accounting for inflation or other factors that affect the real interest rate.

Effective Interest Rate

The actual interest rate on a loan or financial product, reflecting the compounding periods per year.

Financial Statement

Reports that provide information about a company's financial performance and position, including balance sheets, income statements, and cash flow statements.