Question: For all the question the choices are: a) Increases b) Decreases c) No change ROA (return on assets) is measured by Earnings before interest &

 For all the question the choices are: a) Increases b) Decreases

c) No change ROA (return on assets) is measured by Earnings before

interest & tax / Average total assets Assume ROA is less than

100% and that the cash balance remains positive. State the effect the

following event occurring on the reporting date would have on this ratio.

For all the question the choices are:

a) Increases

b) Decreases

c) No change

ROA (return on assets) is measured by Earnings before interest & tax / Average total assets Assume ROA is less than 100% and that the cash balance remains positive. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The receipt of proceeds from a 5-year reducing balance bank loan [Select] Asset turnover is measured by Sales revenue / Average total assets. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: An incremental revaluation of a non-current asset Select] Quick asset ratio is measured by Cash + Receivables / Current liabilities. Assume quick asset ratio is less than 100% (or 1:1) and that the cash balance remains positive at all times. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: A payment for a share buyback [Select] Debt ratio is measured by Total liabilities / Total assets. Assume the cash balance remains positive at all times. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The recognition of the annual amortisation charge Select] NTAB (Net tangible asset backing) is measured by Net tangible assets / Weighted average number of shares on issue. State the effect the following event occurring on the reporting date would have on this ratio. EVENT: The provision of a service on 30-day credit Select]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!