The Profit Margin for Central Division Is 20% and the Investment

question 87

Multiple Choice

The profit margin for Central Division is 20% and the investment turnover is 2.8.What is the rate of return on investment for Central Division?

• A) 20%
• B) 7.1%
• C) 14%
• D) 56%

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Definitions:

Multiple Consolidation Method

A financial accounting approach used to combine the financial statements of multiple entities within a corporate group, considering complex ownership structures.

Multiple Consolidation Method

A technique in accounting that allows for the combination of financial statements from different entities within a group, through methods such as equity or proportional consolidation.

Revaluation Approach

A method of accounting that involves periodic updating of the carrying value of an asset or liability to its current market value.

Net Assets

The total assets of a company minus its total liabilities, representing the owners' equity.