Keeping All Other Factors Constant, Which of the Following Would

question 21

Multiple Choice

Keeping all other factors constant, which of the following would not cause an increase in the return on investment?

• A) actions that increase revenues
• B) actions that increase liabilities
• C) actions that decrease investments
• D) actions that decrease expense
• E) actions that increase sales

Calculate and interpret liquidity ratios (current ratio, acid-test ratio).

Interpret and calculate financial ratios including acid-test (quick) ratio.

Interpret and calculate financial ratios including current ratio.

Determine and interpret the dividend payout ratio for a company.

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Definitions:

Consumer Protection Legislation

Laws and regulations designed to ensure fair trade competition and the free flow of truthful information in the marketplace, protecting consumers from fraudulent or unfair practices.

Credit Charges

Fees or interest rates applied to the balance of borrowed funds or extended credit.

Consumer Protection

Measures and regulations designed to safeguard buyers of goods and services against fraudulent or unfair practices.

Substantial Liability

Refers to a significant financial or legal obligation that could have a major impact on an individual's or entity's financial health.