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C Corp Has a Rate of Return on Assets of 10

question 144

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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: 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


Definitions:

Average Operating Assets

The average value of the assets used in the normal operations of a business over a certain period, often used in evaluating the performance of investment centers.

Controllable Margin

A financial metric used to assess the amount of profit that can be controlled or influenced by managerial decisions.

Cost Center

A responsibility center that incurs costs but does not directly generate revenues.

Generates Revenues

Generates revenues refers to the activities or strategies a company employs to earn income from its business operations.

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