Safari Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown here: Boat Division Trailer Division $90,000 $36,000 Operating income Total assets at Jan. 1 $670,000 $215,000 $210,000 Total assets at Dec.31 $800,000 Which of the following statements would be the most meaningful interpretation of this data? OA. The Boat Division uses its assets less efficiently than the Trailer Division does because it has a lower return on investment. OB. The Boat Division is financially more successful than the Trailer Division because it shows an increase in assets. OC. The Boat Division's performance is better than that of the Trailer Division because it has higher assets. OD. The Boat Division shows a more efficient use of assets than the Trailer Division because it has a higher operating income.

Safari Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown here: Boat Division Trailer Division $90,000 $36,000 Operating income Total assets at Jan. 1 $670,000 $215,000 $210,000 Total assets at Dec.31 $800,000 Which of the following statements would be the most meaningful interpretation of this data? OA. The Boat Division uses its assets less efficiently than the Trailer Division does because it has a lower return on investment. OB. The Boat Division is financially more successful than the Trailer Division because it shows an increase in assets. OC. The Boat Division's performance is better than that of the Trailer Division because it has higher assets. OD. The Boat Division shows a more efficient use of assets than the Trailer Division because it has a higher operating income.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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