A Decrease in Which One of the Following Will Increase

question 36

Multiple Choice

A decrease in which one of the following will increase the return on assets?

• A)long-term debt
• B)sales
• C)inventory
• D)retained earnings
• E)dividends paid

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Definitions:

Sales Returns and Allowances

A reduction in sales revenue due to the return of or allowances for unsatisfactory goods.

Revenue Account

An account that tracks the income a company generates from its business activities, excluding expenses.

Asset

A valuable economic entity held or overseen by an individual, business, or state, expected to bring about future advantage.