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:

A. Answer A

B. Answer B

C. Answer C

D. Answer D

答案和详解如下：

Q23.  C  07 Modular level 1, Vol.1, pp 576-577   Study Sessions 10-46-c

The adjustment would increase both assets and debt. The increase in assets would decrease the ROA and the increase in debt would increase the debt-to-equity ratio because equity would not change.