Which of the Following Transactions Results in a Decrease in the Return

question 56

Multiple Choice

Which of the following transactions results in a decrease in the return on assets ratio?

• A)Increasing the sales price of the products sold.
• B)An increase in the net profit margin ratio.
• C)Purchasing land by signing a long-term note payable.
• D)Collecting cash from an account receivable.

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Definitions:

Contribution Receivable

An amount pledged to be paid to a company or organization as a donation or investment, but which has not yet been received.

Ultimate Collection

A term typically referring to the most complete or finest selection of items in a particular category or series.

Government Grants

Financial assistance given by the government to individuals, organizations, or companies in support of activities that are considered beneficial to the public interest.

Profit-Oriented Enterprise

An organization that operates with the primary goal of earning profits, as opposed to non-profit organizations.