C Corp Has a Rate of Return on Assets of 10

question 144

Multiple Choice

C Corp. has a rate of return on assets of 10%. Not including any indirect effects on earnings, the rate of return on assets is immediately increased when C records:

• A)Option a
• B)Option b
• C)Option c
• D)Option d

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Definitions:

Perpetual Inventory System

An inventory tracking system that updates the balance of inventory continuously with each sale or purchase.

Inventory Ledger

A document or system that tracks the quantities, costs, and types of a company's inventory on hand, including goods in transit and on order.

Determining Cost of Inventory

Involves valuing the items sold and those remaining in stock by allocating costs based on specific identification, FIFO, LIFO, or weighted average methods.

FIFO

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be used or sold.