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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. 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
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