36.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: Receiving cash proceeds from a share issue

a.Increase

b.Decrease

c.No change

37.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: Repaying the principal of an interest-only loan 2 years before it is due

a.Increase

b.Decrease

c.No change

38.The current ratio is measured by Current assets / Current liabilities.

Assume this ratio is greater 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: Recognising interest earned but not received on a term deposit

a.Increase

b.Decrease

c.No change