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Mandarinka [93]
3 years ago
10

Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).

Business
1 answer:
Softa [21]3 years ago
6 0

Answer:

B. False

Explanation:

Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

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Selective attention is a concept in Psychology which describes the various steps or processes put in place to avoid unimportant, unnecessary and unwanted Information or Communication and focus fully on a selected Information or Communication.

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The type of engine that contains 2 camshafts mounted in its cylinder head is called a/an A. overhead camshaft engine. B. push ro
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2 years ago
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ME Company has a debt-equity ratio of .57. Return on assets is 7.9 percent, and total equity is $620,000. a. What is the equity
Lera25 [3.4K]

Answer:

8.06

Explanation

  • Debt equity ratio=Debt÷ Equity
  • Debt÷Equity=0.57
  • Equity=620,000 in this question
  • Debt=620,000*0.57=353,400.
  • Assets=Debt+Equity
  • Assets in this case=353,400+620,000=973,400
  • Return on asset=Profit for the year=7.9%*973,400=76898.6
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  • Equity Multiplier=620,000/76898.6=8.06

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3 years ago
Identify each statement as true or false. If false, indicate how to correct the statement.
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1. True: Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.

2. False: Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False because limited liability of Stockholders is considered as an advantage.

3. False: When a corporation is formed, organization costs are recorded as an asset. It is false because organization costs are recorded as expenses.

4. True: Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.

5. False: The number of issued shares is always greater than or equal to the number of authorized shares. It is false because the number of issued shares is always less than or equal to the number of authorized shares.

6. False: A journal entry is required for the authorization of capital stock. It is false because journal entry is not required for the authorization of capital stock but for issuance.

7. False: Publicly held corporations usually issue stock directly to investors. It is false because publicly held corporations issue stock indirectly to investors via investment banking institutions while privately held corporations issues stock directly.

8. True: The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.

9. False: The market price of common stock is usually the same as its par value. It is false because there isn't any relationship between market value of common stock and its par value.

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