Alex Is Preparing the Financial Report for Evans Corp

question 12

Multiple Choice

Alex is preparing the financial report for Evans Corp.'s annual report. His manager, Sadie, has instructed him to inflate the numbers in order to meet short-term earnings goals. By doing this, Sadie:

• A) is putting the organization first before her own self-interest.
• B) is displaying full-scale corruption.
• C) wants to meet the demands of vendors.
• D) wants to please shareholders.

---

Definitions:

Investment Turnover

A ratio that measures how effectively a company uses its invested capital to generate sales revenue.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as a percentage of the investment's profit to its cost.

Support Department Cost

Support department cost refers to the expenses associated with departments that provide essential services or support to production departments but do not directly engage in the production process.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of net sales to average invested assets.