单选题

A company operating in a highly fragmented and competitive industry reported an increase in ROE over the prior year. Which of the following reasons for the increase in ROE is least likely to be sustainable? The company:

A、 increased the prices of its product significantly.
B、 decided to make greater use of long-term borrowing capacity.
C、 implemented a new IT system allowing it to reduce working capital levels as a percentage of assets.

【正确答案】 A

【答案解析】

Describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, and unusual or infrequent items) and changes in accounting standards.
Demonstrate the application of Dupont analysis of return on equity, and calculate and interpret the effects of changes in its components.
Explain the effects of barriers to entry, industry concentration, industry capacity, and market share stability on pricing power and return on capital.
A is correct.