The Electronics Division of Anton Company Reports the Following Results

question 90

Multiple Choice

The Electronics Division of Anton Company reports the following results for the current year: $\begin{array}{|l|lr|}\hline \text { Revenues } & \$ & 800,000 \\\hline \text { Operating expenses } & \$ & 720,000 \\\hline \text { Operating income } & \$ & 144,000 \\\hline \text { Operating assets } & \$ & 1,200,000 \\\hline\end{array}$ Anton Company has set a target return on investment (ROI) of 11% for the Electronics Division.The Electronic Division's return on investment is:

• A) 11.25%.
• B) 12%.
• C) 66.7%.
• D) 18%.

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Definitions:

Cash Flows

The sum of funds being moved in and out of a company, particularly influencing its ability to meet short-term obligations.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

IFRS

International Financial Reporting Standards, a set of accounting rules and standards that define how transactions and other accounting events should be reported in financial statements. They are designed to be globally consistent to enhance international comparability and quality of financial statements.

Cash Flow Reporting

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.