Selected Information for Acme Corp -When Calculating Acme's Return on Net Operating Assets in Year

question 29

Multiple Choice

Selected information for Acme Corp.:
$\begin{array}{c}\begin{array}{|l|c|}\hline & \text { Year 1 } \\\hline \text { Cash } & 1,000 \\\hline \text { Marketable securities } & 8,000 \\\hline \text { Occounts receivable-net } & 2,000 \\\hline \text { Other current assets } & 2,500 \\\hline \text { Property, plant and equipment } & 4,500 \\\hline \text { Less: accumulated depreciation } &(4,000) \\\hline \text { Gess: accumulated depreciation } & 5,000\\\hline\end{array}\begin{array}{c|c|}\hline\text { Year 2 } & \text { Year 3 } \\\hline 1,500 & 1,500 \\\hline 2,000 & 2,000 \\\hline 3,000 & 2,500 \\\hline 3,000 & 3,000 \\\hline 6,000 & 7,000 \\\hline(4,200) & (4,400) \\\hline 7,500 & 1,000\\\hline\end{array}\end{array}$
-When calculating Acme's return on net operating assets in Year 3, which of the following adjustments to the asset base is most appropriate to consider?

• A) Accumulated depreciation adjustment
• B) Intangible asset adjustment
• C) Nonoperating asset adjustment
• D) No asset adjustment

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Definitions:

Directional Selection

A form of natural selection where one extreme phenotype is favored over others, causing the allele frequency to shift in one direction.

Extreme Phenotype

The manifestation of traits at the extreme endpoints of a genetic expression spectrum.

Inbreeding

The breeding of closely related individuals, which increases the risk of offspring inheriting genetic defects.

Nonrandom Mating

A mating pattern in which individuals choose partners based on particular traits, leading to non-random distribution of alleles in the population.