The Following Question Relates to PQR,which Has the Following Ratios

question 34

Multiple Choice

The following question relates to PQR,which has the following ratios: return on assets, (ROA) 10 per cent;return on equity (ROE) 12 per cent;and current ratio (CR) of 1.8:1.
-The company changed accounting methods by deciding to capitalise rather than expense a research and development outlay.This will:

• A) increase ROE,but have no effect on ROA and CR.
• B) increase ROA,ROE and CR.
• C) increase ROA and ROE,but have no effect on CR.
• D) have no effect on ROA,ROE or CR.

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Definitions:

Societal Problem

A challenge or issue that affects a significant number of people within a society, requiring collective action for resolution.

Innovation Process

A systematic series of steps that includes the generation, development, and implementation of new ideas or products.

Idea Generation

The method of inventing, formulating, and sharing novel ideas or answers.

Operational And Work Methods

Refers to the standardized procedures and practices that are used to carry out day-to-day activities in an organization efficiently.