Aaron Corp's Net Income Is $25,000

question 140

Multiple Choice

Aaron Corp's net income is $25,000.What is the amount of the investment if the return on investment is 20%?

• A) $50,000
• B) $100,000
• C) $125,000
• D) $250,000

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Definitions:

Flexible Budget

A budget that shows the expected results of a responsibility center for several activity levels.

Static Budgets

Financial plans that remain unchanged over the budget period, irrespective of any variations in activity levels.

Master Budgeting

A comprehensive financial planning document that includes all of an organization's budgets for a specific period.

Budget Preparation

The process of creating a plan that estimates the revenue and expenses for a future period.