The Northern Division of the Smith Company Had Average Total

question 97

Multiple Choice

The Northern Division of the Smith Company had average total operating assets of $150,000 last year.Its minimum required rate of return was 12%.The division reported operating income of $20,000.What was the residual income for the Northern Division last year?

• A) $2,000.
• B) $5,000.
• C) $18,000.
• D) $20,000.

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Definitions:

Vascular Tissue

Specialized tissue in plants that conducts water and nutrients throughout the plant body; includes xylem and phloem.

Xylem

A type of tissue in plants that transports water and some nutrients from the roots to the leaves.

Gymnosperms

Seed-producing plants that bear their seeds directly on the surfaces of cones, differing from flowering plants in their mode of reproduction.

Single Species

Refers to a specific, individual species as opposed to a group or community of multiple species.