Which of the Following Could Cause Return on Assets to Decline

question 28

Multiple Choice

Which of the following could cause return on assets to decline when net profit margin is increasing?

• A)Sale of investments at year-end
• B)Increased turnover of operating assets
• C)Decline in book value
• D)A stock split
• E)Purchase of a new building at year-end

---

Definitions:

Self-reference Effect

A phenomenon where individuals are more likely to remember information that is personally relevant or related to themselves.

Personally Meaningful Memories

Memories that hold significant personal value and contribute to an individual's identity and sense of self.

Self-discrepancy Theory

A theory suggesting that psychological discomfort arises from differences between one's actual self, ideal self, and ought self.

Desired Selves

Represents an individual’s aspirations, goals, or ideal images of themselves that they strive to achieve or become.