From the Viewpoint of a Stockholder, Which of the Following

question 14

Multiple Choice

From the viewpoint of a stockholder, which of the following relationships do you consider of least significance?

• A) The return on assets consistently is higher than the industry average.
• B) The return on equity has increased in each of the past five years.
• C) Net income is greater than the amount of working capital.
• D) The return on assets is greater than the rate of interest being paid to creditors.

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Definitions:

AASB 137

An accounting standard that provides the accounting treatment and disclosure for provisions, contingent liabilities, and contingent assets.

Comparative Information

Financial data presented for multiple periods, allowing users to identify trends, measure performance, and make comparisons over time.

Unused Amounts

Portions of a line of credit or loan commitment that have not been borrowed as of a particular point in time.