The Following Question Relates to PQR, Which Has the Following

question 7

Multiple Choice

The following question relates to PQR, which has the following ratios: return on assets, (ROA) 12 per cent; return on equity (ROE) 15 per cent; and current ratio (CR) of 1.8:1. Additional credit sales of $2 million (cost price $1.5 million) are made. This transaction will:

• A) increase ROA, ROE and CR.
• B) increase ROA and ROE but not CR.
• C) increase ROA and CR but not ROE.
• D) increase ROA and ROE but decrease CR.

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Definitions:

Trial and Error

A problem-solving method involving repeated attempts to reach a solution, learning from failures until success is achieved.

Tool Kit

A set of tools or resources assembled for a specific purpose or task.

Trial and Error

A method of problem-solving that involves attempting different solutions and eliminating those that do not work.

Possible Solutions

Potential ways or methods to solve a problem or address a situation effectively.