The Following Information Pertains to Singh Company Invested Capital Is Defined as Total Assets

question 104

Multiple Choice

The following information pertains to Singh Company:
$\begin{array}{ll}\text { Average total assets } & \$ 50,000 \\\text { Net operating profit after taxes } & \$ 15,000 \\\text { Total current liabilities } & \$ 30,000 \\\text { Total expenses } & \$ 60,000 \\\text { Total liabilities } & \$ 35,000 \\\text { Total revenues } & \$ 80,000\end{array}$
Invested capital is defined as total assets.The capital charge is 10%.What is the residual income?

• A) $1,600
• B) $10,000
• C) $15,000
• D) $20,000

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Definitions:

Population Size

The total number of individuals or units in the group or area being studied.

Sampling Distribution

The likelihood distribution derived from a certain statistic using a random sample.

Standard Error

Standard error measures the dispersion or accuracy of sample statistics compared to the true population parameter, usually in mean calculations.

Random Sample

A subset of individuals chosen from a larger set (population) where each individual has an equal chance of being selected.