Based on the Following Information,what Is the Recoverable Amount

question 59

Multiple Choice

Based on the following information,what is the recoverable amount?

• A)$185,000
• B)$200,000
• C)$220,000
• D)$300,000

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Definitions:

Debt

Debt refers to the amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

ROA

Return on Assets, a financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficient management is at using assets to generate earnings.

DuPont Analysis

DuPont Analysis is a financial evaluation method breaking down return on equity into three components: operating efficiency, asset use efficiency, and financial leverage, to identify what drives a company's profitability.

Earnings Yield Ratio

A metric used to evaluate the profitability of a company, calculated as earnings per share divided by the stock price.