Carlton division has been stagnant for the past five years,neither growing nor contracting in size and profitability.Investments in new property,plant and equipment have been minimal.Would the division's use of total assets (valued at net book value)when measuring return on investment result in (1)using numbers that are consistent with those in the balance sheet and (2)a rising return on investment over time?
A.
Yes
Yes
B.
No
Yes
C.
No
No
D.
Yes
Need more information to judge

Question

Quizplus · Accepted Answer

The Answer of Carlton division has been stagnant for the past five years,neither growing nor contracting in size and profitability.Investments in new property,plant and equipment have been minimal.Would the division's use of total assets (valued at net book value)when measuring return on investment result in (1)using numbers that are consistent with those in the balance sheet and (2)a rising return on investment over time?
A.
Yes
Yes
B.
No
Yes
C.
No
No
D.
Yes
Need more information to judge

Carlton Division Has Been Stagnant for the Past Five Years,neither