Q23. Assume U.S.GAAP (generally accepted accounting principles) applies unless otherwise noted.
An analyst suspects that a particular company’s financial statements may require adjustment because the company uses throughput
agreements. The most likely effect of the appropriate adjustments on the company’s return on assets (ROA) and debt-to-equity ratio, respectively, would be:
| ROA | Debt-to-equity ratio |
A | Increase | Increase |
B | Increase | Decrease |
C | Decrease | Increase |
D | Decrease | Decrease |
A. Answer A
B. Answer B
C. Answer C
D. Answer D
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