Last Year the Uptown Division of Gorcen Enterprises Had Sales

question 95

Multiple Choice

Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net operating income of $24,000. The average operating assets at Uptown last year amounted to $120,000.
-Last year at Uptown the return on investment was:

• A)8%
• B)12%
• C)20%
• D)40%

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Definitions:

Total Liabilities

The combined amount of obligations and debts a company owes to outside parties that must be repaid.

Total Assets

The sum of all resources owned by a company, valued at cost or market value on the balance sheet, representing the company's total owned resources.

IASB

International Accounting Standards Board, an independent organization that develops and approves International Financial Reporting Standards (IFRS).

Financial Accounting Standards

Rules and standards set by authoritative bodies that dictate how companies prepare and present their financial statements.