The Following Question Relate to PQR, Which Has the Following

question 43

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.
-The company purchased raw materials on credit for $200 000.This transaction will:

• A) decrease ROA,ROE and CR
• B) decrease ROA and CR,but not ROE
• C) decrease ROA only
• D) have no effect.

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Definitions:

Labor Force

The total number of people employed or seeking employment in a country or particular area.

Unemployment Rate

The percentage of people in the labor force who are not currently employed but are seeking work.

Labor Force

The total number of people who are eligible and willing to work, including both employed and unemployed individuals.

Recovery Phase

A period in the economic cycle where economic activity picks up and grows, following a recession or slowdown.