Which of the Following Statements Is Incorrect

question 239

Multiple Choice

Which of the following statements is incorrect?

• A) The equity multiplier is equal to 1 plus the debt-equity ratio.
• B) Return on equity is equal to the return on assets multiplied by the equity multiplier.
• C) Return on equity is equal to total equity divided by net income.
• D) Return on equity is equal to the equity multiplier multiplied by the total asset turnover multiplied by the profit margin.
• E) The difference between the asset multiplier and liability multiplier equals the equity multiplier.

Recognize strategies for improving memory retention and combating common memory issues.

Understand the Statute of Frauds and the requirement for certain contracts to be in writing.

Identify the essential elements that must be included in a written contract under the Statute of Frauds.

Recognize the enforceability of oral agreements in specific circumstances.

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Definitions:

True Caster Angle

The angle formed by the steering axis and the vertical axis of a wheel when viewed from the side, affecting stability and steering.

Gear Oil

A high-viscosity lubricant used in gearboxes, differentials, and transfer cases in vehicles, designed to protect against wear, corrosion, and overheating.

Manual Steering Gear

A steering mechanism in vehicles that requires physical effort from the driver to steer, without the aid of power assistance.

Northern Winter Conditions

Specific environmental conditions characterized by extreme cold, snow, and ice, affecting vehicles and equipment operation.