Which of the Following Will Not Result in an Increase

question 38

Multiple Choice

Which of the following will not result in an increase in the residual income,assuming other factors remain constant?

• A)An increase in sales.
• B)An increase in the minimum required rate of return.
• C)A decrease in expenses.
• D)A decrease in operating assets.

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Predictive

Relating to the ability to forecast future events, trends, or behaviors based on current or past data.

Correlation Scores

Numerical measures that indicate the extent to which two variables fluctuate together.