Question: You may need a calculator to answer this question. Consider the following information for a business: Current assets Bank 75,000 Accounts receivable 20,000 Inventory 45,000
You may need a calculator to answer this question. Consider the following information for a business:
|
| |
| Current assets |
|
| Bank | 75,000 |
| Accounts receivable | 20,000 |
| Inventory | 45,000 |
| Non-current assets |
|
| Property, plant, and equipment | 100,000 |
Which amount will be used when calculating return on total assets?
Select one:
a. 240,000
b. 175,000
c. 100,000
d. 140,000
The total equity amount used when calculating return on equity includes all equity of the business, such as share capital and retained earnings.
Select one:
True
False
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