AICPA Exam CPA-Business Topic 1 Question 107 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 107
Topic #: 1

[All CPA-Business Questions]

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

Quest's return on investment was:

A10.00 percent.

B13.33 percent.

C27.50 percent.

D30.00 percent.

Show Suggested 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 Emerson at Feb 07, 2025, 08:11 PM

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Charolette

13 days ago

I'm not sure, but I think it might be C) 27.50 percent. Can someone explain their reasoning?

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Rozella

14 days ago

I agree with Domonique, the return on investment seems to be around 13.33 percent.

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Tabetha

15 days ago

D) 30.00 percent sounds too good to be true. I'm going with C) 27.50 percent, it's the most reasonable option here.

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Reyes

17 days ago

The correct answer is C) 27.50 percent. The calculation is straightforward, and I'm confident in my answer.

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Allene

6 days ago

I think it's B) 13.33 percent.

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Domonique

19 days ago

I think the answer is B) 13.33 percent.

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