Each of the Following Represents a Way of Calculating ROI

question 140

Multiple Choice

Each of the following represents a way of calculating ROI (return on investment) for a division except:

• A) (Operating income/sales) × (sales/investment).
• B) Operating income/divisional investment.
• C) Return on sales (ROS) × Inventory turnover.
• D) Operating income/divisional assets.

Identify the rights and liabilities of partners upon dissolution or continuation of a partnership.

Comprehend the significance of the partnership agreement in the dissolution process and partner responsibilities.

Distinguish between limited partnerships, general partnerships, and LLCs in the context of management responsibilities and liability.

Understand the impact of wrongful dissolution and the legal consequences for the involved partners.

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Definitions:

Consistent Application

The principle that companies should apply accounting policies uniformly throughout reporting periods to ensure comparability of financial statements over time.

Comparability

A financial accounting concept that ensures financial statements can be compared between periods and with other companies.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.