Which One of the Following Changes Will Provide an Increase

question 56

Multiple Choice

Which one of the following changes will provide an increase (if only in the short-run) in a firm's ROE?

• A) A decrease in the profit margin
• B) An increase in the dividend-payout ratio
• C) An increase in equity
• D)An increase in tax rates

Describe and apply return on investment (ROI) concepts to assess business performance.

Use statistical and financial functions in software (e.g., Excel or PHStat) to analyze investment and financing options.

Understand the fundamental concepts of debits and credits in accounting.

Comprehend the structure and purpose of a general ledger in financial accounting.

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Definitions:

Invoice

A document detailing a transaction between a buyer and seller, including the quantity, price, and terms of sale.

Cash Discount

A deduction from the invoice price offered by a seller to encourage prompt payment by the buyer.

Payment Terms

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay off the amount due.

Invoice

A document issued by a seller to a buyer indicating the products or services provided, their quantities, and the agreed prices for products or services the seller has provided but not yet been paid for.