The Following Question Relates to PQR, Which Has the Following

question 29

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. Directors decided to revalue land upwards by $350 000. This transaction will:

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

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Definitions:

Forgo

To abstain or refrain from something, often referring to the opportunity or choice given up in decision making.

Reagent Strip

A diagnostic strip used for conducting tests on various bodily fluids, such as urine, by changing color to indicate the presence or concentration of certain substances.

Ketones

Organic compounds characterized by a carbonyl group attached to two carbon atoms, can be produced in the body during fat metabolism.

Urine Sample

A sample of urine collected for medical testing to evaluate and diagnose health conditions.