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AICPA CPA-Business Exam - Topic 3 Question 77 Discussion

The following information pertains to Quest Co.'s Gold Division for 1993:Quest's return on investment was:
C) 27.50 percent.
A) 10.00 percent.
B) 13.33 percent.
D) 30.00 percent.

AICPA CPA-Business Exam - Topic 3 Question 77 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 77
Topic #: 3
[All CPA-Business Questions]

The following information pertains to Quest Co.'s Gold Division for 1993:

Quest's return on investment was:

Show Suggested Answer Hide Answer
Suggested Answer: C

Choice 'c' is correct. Return on investment equals net income divided by average invested capital:

Choices 'a', 'b', and 'd' are incorrect, per the above calculation.


by Kaitlyn at Nov 25, 2023, 05:37 PM

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Avery
7 months ago
Quest's Gold Division had a solid year in '93!
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Jerrod
8 months ago
Really? 27.50 percent seems a bit off to me.
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Laurel
8 months ago
I calculated it as 13.33 percent.
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Cherilyn
8 months ago
Definitely not, it's way too high!
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Cassie
8 months ago
I think the ROI was 30.00 percent.
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Nathalie
9 months ago
I think the ROI should be calculated by dividing net income by total investment. I’m stuck between A and B, though.
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Lynda
9 months ago
I feel like I’ve seen a question with a similar setup before. I’m leaning towards D, but I’m not completely confident.
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Venita
9 months ago
This question seems similar to one we practiced about calculating returns. I think it’s either B or C, but I can’t recall the exact numbers.
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Arlie
9 months ago
I remember we calculated ROI in class, but I’m not sure if I got the formula right for this one.
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Tricia
9 months ago
No problem, I've got this. I know the ROI formula like the back of my hand. Just a quick calculation and I'll have the right answer.
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Crista
9 months ago
Whoa, this is a lot of information to process. I better take my time and make sure I understand exactly what I'm being asked to do here. Can't afford to rush through this one.
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Merlyn
9 months ago
Alright, time to put my financial analysis skills to the test. I've got the data I need, so I just need to plug it into the ROI equation and see which answer choice matches.
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Stanton
9 months ago
Hmm, this looks like a straightforward calculation, but I want to make sure I'm not missing anything. I'll double-check the numbers and the formula to be confident in my answer.
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Johnetta
9 months ago
Okay, let me think this through. The question is asking for Quest's return on investment, and the information provided includes revenue, expenses, and assets. I'll need to calculate the ROI using the formula.
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Adolph
9 months ago
The Deming cycle is a great tool for improving processes, so I agree that option A is the way to go. It's all about the plan-do-check-act approach.
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Gary
9 months ago
I think up to date security protection is definitely one of the main factors, but I'm not sure about the second one.
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Dyan
9 months ago
EXT and NTFS are the obvious choices here. They can handle large file sizes and are commonly used for enterprise storage.
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Salley
10 months ago
I'm a bit unsure about this one. The question is asking if the underlined text is correct, but I'm not entirely sure what the difference is between "zone replication" and the other options. I'll have to think this through carefully.
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