The Following Information Is Available: What Is the Return on Equity

question 129

Multiple Choice

The following information is available: What is the return on equity? (round to the nearest number)

• A) 5%.
• B) 15%.
• C) 20%.
• D) 25%.

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Definitions:

Uncollectible

Refers to accounts receivable or other debts that are considered unlikely to be collected and may be written off as a loss.

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a specific period.

Authority and Responsibility

The granting of power to make decisions and the accountability that comes with those decisions within an organization.

Budgeted Cash Receipts

An estimation of the cash inflows that the organization anticipates receiving during a particular period, often as part of a budgeting process.