Use This Balance Sheet and Income Statement to Answer the Following

question 147

Multiple Choice

Use this balance sheet and income statement to answer the following question. Use ending balances whenever average balances are required for computing ratios. The return on assets for Abner Systems is

• A) 30 percent.
• B) 150 percent.
• C) 33-1/3 percent.
• D) 24 percent.

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Definitions:

Voting Shares

Shares of a company's stock that grant the holder the right to vote on corporate matters.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Dividends Received

Income received from owning shares in a company, typically paid out from the company's profits.

FVTPL

Fair Value Through Profit or Loss - a financial reporting method where assets and liabilities are measured at their current market value, with changes impacting the profit or loss directly.