When Using Financial Performance Measures,which of the Following Statements Is

question 217

Multiple Choice

When using financial performance measures,which of the following statements is incorrect?

• A) Most companies use a weighted-average to determine the amount of average assets for ROI calculations.
• B) Average total assets are used for both ROI and RI computations.
• C) The limitations of financial performance measures reinforce the importance of the balanced scorecard.
• D) In general, calculating ROI based on the net book value of assets gives managers an incentive to continue using old, outdated equipment because its low net book value results in a higher ROI.

Calculate the effects of deposit transactions on the money supply in a banking system.

Describe the structure and functions of the Federal Reserve System.

Understand the concept of reserve requirements and their role in banking and monetary policy.

Calculate and interpret the money multiplier and its implications for the banking system.

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