Profit Before Finance Costs Is Used in Calculating Return on Total

question 5

Multiple Choice

Profit before finance costs is used in calculating return on total assets because:

• A) interest rates are hard to predict.
• B) it is simpler to calculate than profit after deducting finance costs.
• C) the efficient use of resources should be examined independently of the method of financing.
• D) interest is a tax deduction for a company.

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Definitions:

TO (Telephone Order)

An instruction or prescription given by a healthcare professional over the phone to another healthcare provider.

Collective Unconscious

A term coined by Carl Jung referring to structures of the unconscious mind which are shared among beings of the same species.

Personality Functioning

Aspects of an individual's personality that influence their patterns of thought, feeling, and behavior in daily life.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.