Selected Data from Chering Division's Accounting Records Revealed the Following

question 81

Multiple Choice

Selected data from Chering Division's accounting records revealed the following:
$\begin{array}{lcc}\text { Sales } & \$ 825,000 \\\text { Average investment } & \$ 440,000 \\\text { Net operating income } & \$ 66,000 \\\text { Minimum rate of return (divisional cost of capital) } & 14 \%\end{array}$ Chering Division's asset turnover (AT) is calculated to be:

• A)1.070.
• B)1.625.
• C)1.875.
• D)4.270.
• E)12.500.

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Definitions:

Insurance Law

A branch of law that deals with the regulation of insurance policies and claims.

Premium

The amount paid for insurance coverage or an additional cost for higher-quality services or products.

Specified Period

A clearly defined duration of time, set out in an agreement, contract, or statute, during which certain actions can take place or conditions apply.

Real Estate Sales Agreement

A legally binding contract between a buyer and a seller outlining the terms and conditions of the sale of real property.