Which of the Following Changes Would Increase Return on Investment

question 14

Multiple Choice

Which of the following changes would increase return on investment (ROI) ?

• A)Decrease sales and expenses by the same percentage.
• B)Increase total assets.
• C)Increase sales and expenses by the same percentage.
• D)Decrease sales and expenses by the same dollar amount.

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Definitions:

Statement of Owner's Equity

A financial statement that shows changes in the equity of a company over a given period, including investments, withdrawals, and profit or loss.

Sales Journal

A specialized accounting journal that records the company's sales transactions, typically on credit.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.