A Company Had the Following Results Last Year: Sales,$700,000; Return

question 24

Multiple Choice

A company had the following results last year: sales,$700,000; return on investment,28%; and margin,8%.What were the average operating assets last year?

• A) $200,000.
• B) $540,000.
• C) $2,450,000.
• D) $2,500,000.

Understand the accounting treatment and reporting of various types of investments, including held-to-maturity securities, trading securities, and equity investments.

Identify the effects of purchase, sale, and holding of investments on financial statements.

Apply the equity method for investments where the investor has significant influence over the investee.

Grasp the concept of fair value accounting and its application to investment securities.

---

Definitions:

Lateral Transfer

The movement of an employee from one position to another of equivalent status, responsibilities, and pay within the same organization.

Temporary Assignment

A work assignment that has a defined start and end date, often used to fill short-term needs for specific projects or to cover for absent employees.

Employee Exchange Program

A program where employees from different departments, companies, or countries swap positions temporarily to gain diverse experience and insights.

Evaluation Methods

Techniques and procedures used to assess the effectiveness, performance, or value of employees, projects, or programs within an organization.