Wednesday, February 20, 2013

A problem with utilizing residual income is that

ACCOUNTING

Multiple Choice

A problem with utilizing residual income is that

a. a corporation with a high investment turnover ratio always has a higher residual income than a corporation with a smaller investment turnover ratio.

b. a corporation with a high return on sales always has a higher residual income than a corporation with a smaller return on sales.

c. A corporation with a larger dollar amount of assets is likely to have a higher residual income than a corporation with a smaller dollar amount of assets.

d. none of the above are correct.

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