The Following Question Relates to PQR, Which Has the Following

question 29

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. Directors decided to revalue land upwards by $350 000. This transaction will:

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

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Definitions:

Child Care Center

A facility that provides supervision and care for infants and young children during the daytime, allowing parents to work or fulfill other responsibilities.

Developmentalist

A specialist who studies the patterns of growth, change, and stability that occur throughout the human lifespan, focusing on developmental psychology or physical growth.

Attachment

An emotional bond that forms between individuals, especially between parents and their children, influencing personality development and behavior.

Caregiving

The activity or profession of regularly looking after a child or a sick, elderly, or disabled person.