Which of the Following Transactions Will Decrease Both the Return

question 55

Multiple Choice

Which of the following transactions will decrease both the return on assets ratio and the total asset turnover ratio?

• A)Purchasing land by signing a note payable.
• B)Accruing interest expense at year-end.
• C)Accruing interest revenue at year-end.
• D)Collecting cash from an account receivable.

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Definitions:

Lexus Dealers

Automotive dealerships that specialize in the sale and service of Lexus vehicles, a luxury vehicle division of the Japanese automaker Toyota.

Forecasting Time Horizon

The future time period for which a forecast is prepared, which can be short-term, medium-term, or long-term, based on the nature of the decisions to be made.

Life Cycle

The series of stages a product, system, or project goes through from initial conception to its end or disposal.

Individual Products

Items that are distinct and identifiable, typically possessing unique features that differentiate them from other products.