The Following Question Relate to PQR, Which Has the Following

question 14

Multiple Choice

The following question relate to PQR, which has the following ratios: return on assets, (ROA) 12%; return on equity (ROE) 14%; and current ratio (CR) of 2:1.
-Additional credit sales of $2 million (cost price $1.5 million) are made.This transaction will:

• A) increase ROA,ROE and CR
• B) increase ROA and ROE but not CR
• C) increase ROA and CR but not ROE
• D) increase ROA,increase ROE and decrease CR.

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