The Following Question Relates to PQR,which Has the Following Ratios

question 42

Multiple Choice

The following question relates to PQR,which has the following ratios: return on assets, (ROA) 10 per cent;return on equity (ROE) 12 per cent;and current ratio (CR) of 1.8:1.
-The company purchased raw materials on credit for $400 000.This transaction will:

• A) decrease ROA,ROE and CR.
• B) decrease ROA and CR,but not ROE.
• C) decrease ROA only.
• D) have no effect.

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Definitions:

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Ego

The part of the psyche that mediates between the conscious, the unconscious, and the external world, according to Freudian psychology.

Erogenous Zones

Areas of the body that are particularly sensitive to sexual stimulation.

Id's Pleasure-Seeking Energies

The component of the human psyche in Freudian psychology associated with instinctual urges and drives for immediate gratification.