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

question 34

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 changed accounting methods by deciding to capitalise rather than expense a research and development outlay.This will:

• A) increase ROE,but have no effect on ROA and CR.
• B) increase ROA,ROE and CR.
• C) increase ROA and ROE,but have no effect on CR.
• D) have no effect on ROA,ROE or CR.

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Definitions:

Customer Understanding

The process and result of comprehending customers' needs, preferences, and behaviors.

Trial Close

A technique used in sales to gauge a potential buyer's interest or objections by asking for their opinion or commitment before the final close.

Objection

A concern or argument raised by a potential buyer that indicates hesitance or refusal to purchase a product or service.

Conviction Stage

A phase in the sales process where a potential customer becomes convinced of the value or benefits of the product or service, making them more likely to make a purchase.