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.

Recognize the ethical implications associated with workplace design and workload.

Examine the effects of the Hawthorne studies on modern human resource strategies.

Understand the concepts underlying employment stability and its impact on organizational performance.

Understand the purpose and application of operations charts.

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Definitions:

Acid-Test Ratio

A financial metric used to determine a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and receivables).

Account Payable

Represents the amount of money a company owes to its suppliers or creditors for goods and services received but not yet paid for.

Acid-Test Ratio

A stringent indicator of a company's liquidity, calculated by dividing its liquid assets (excluding inventory) by its current liabilities.

Balance Sheet

A financial report detailing a firm's assets, liabilities, and equity of shareholders at a particular moment.