If the Return on Assets Is Positive, an Increase in Total

question 117

Multiple Choice

If the return on assets is positive, an increase in total assets will result in

• A)an increase in the return on assets.
• B)a decrease in the return on assets.
• C)no change in the return on assets.
• D)the effect cannot be determined.

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Definitions:

Forecasting Model

A mathematical or theoretical representation used to predict future values or trends based on historical data.

Naïve Forecast

A forecasting method that assumes future values will be the same as the most recent actual value observed.

September Sales

The volume of goods or services sold by a business during the month of September.

Seasonal Indices

numerical values used to adjust data for seasonal effects, enabling comparison across different time periods by accounting for regular patterns of change.