The following information is available for the Peppercorn Company:

-Which of the following changes would increase return on investment?
A) An increase in expenses and a decrease in sales at the same time
B) An increase in assets
C) A decrease in sales revenue
D) A decrease in expenses

Question

The following information is available for the Peppercorn Company:
 
-Which of the following changes would increase return on investment?
A) An increase in expenses and a decrease in sales at the same time 
B) An increase in assets 
C) A decrease in sales revenue 
D) A decrease in expenses

Quizplus · Accepted Answer

Decreasing expenses would increase the company's net income, which would increase return on investment.

The Following Information Is Available for the Peppercorn Company