Fine Furnishings Pty Ltd Earned Residual Income of $40 000

question 76

Multiple Choice

Fine Furnishings Pty Ltd earned residual income of $40 000 during the year. The net profit was $160 000 during the year and the cost of capital was 12 per cent. What was the return on investment for the year?

• A) 9%
• B) 12%
• C) 16%
• D) Insufficient information to determine

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Definitions:

Crystallized Intelligence

Crystallized intelligence is the ability to use learned knowledge and experience.

Chemical Symbols

shorthand notations used to represent chemical elements (e.g., H for Hydrogen, O for Oxygen) based on the periodic table.

Practical Intelligence

The intellectual skills used in everyday problem solving. (Sometimes called tacit intelligence.)

Sternberg's Intelligences

A theory proposing three main types of intelligence: analytical (problem-solving abilities), creative, and practical, which help individuals face various life challenges.