Which of the Following Is Not a Factor That Should

question 45

Multiple Choice

Which of the following is not a factor that should be considered in determining whether an activity is treated as an appropriate economic unit?

• A) The interdependencies between the activities.
• B) The extent of common control.
• C) The extent of common ownership.
• D) The geographical location.
• E) All of the above are relevant factors.

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Definitions:

Market Price

The current purchase or sale price of an asset or service in the market.

Return on Equity

A measure of a corporation's profitability relative to stockholders’ equity, indicating how effectively management is using a company's assets to create profits.

Cash Coverage Ratio

This is a measure of a company's ability to cover its debt obligations with its available cash and cash equivalents.

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.