The Management of Pasama Inc

question 148

Multiple Choice

The management of Pasama Inc.is evaluating the three segments of the company.Given the data below,which of the following statements is true regarding segment return on assets?

• A)Segment Africa has the highest operating income and the highest return on assets
• B)Segment Belgium has the highest operating income and the highest return on assets
• C)Segment Canada has the highest operating income and the highest return on assets
• D)Segment Canada has the highest return on assets and Segment Africa has the lowest return on assets
• E)Segment Belgium has a higher return on assets than Segment Canada

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Definitions:

Debit Portion

The section of a financial transaction that records the increase in assets or decrease in liabilities on the left side of an account.

Credit Portion

Refers to the part of a financial transaction that is recorded as a credit in the accounting records, increasing liabilities or decreasing assets.

Revenue Recognition Principle

An accounting principle that dictates the conditions under which revenue is recognized and determines how revenue is accounted for.

Revenue Account

An account that tracks the income generated from a company's primary operations.