This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. At the end of 20X1, an investment centre has net assets of $1m and annual operating profits of $190,000. However, the bookkeeper forgot to account for the following:
A、machine with a net book value of $40,000 was sold at the start of the year for $50,000, and replaced with a machine costing $250,000. Both the purchase and sale are cash transactions. No depreciation is charged in the year of purchase or disposal. The investment centre calculates return on investment (ROI) based on closing net assets. Assuming no other changes to profit or net assets, what is the return on investment (ROI) for the year?
A、machine with a net book value of $40,000 was sold at the start of the year for $50,000, and replaced with a machine costing $250,000. Both the purchase and sale are cash transactions. No depreciation is charged in the year of purchase or disposal. The investment centre calculates return on investment (ROI) based on closing net assets. Assuming no other changes to profit or net assets, what is the return on investment (ROI) for the year?
【参考答案及解析】
Revised annual profit = $190,000 + $10,000 profit on the sale of the asset = $200,000 Revised net assets = $1,000,000 – $40,000 NBV + $50,000 cash – $250,000 cash + $250,000 asset = $1,010,000 ROI = ($200,000/$1,010,000) × 100 = 19.8%
Revised annual profit = $190,000 + $10,000 profit on the sale of the asset = $200,000 Revised net assets = $1,000,000 – $40,000 NBV + $50,000 cash – $250,000 cash + $250,000 asset = $1,010,000 ROI = ($200,000/$1,010,000) × 100 = 19.8%