Quiz Solutions

Which of the following formulae is used to calculate average

Which of the following formulae is used to calculate average total assets for the return on assets ratio? A) Average total assets = (Beginning total assets + Ending total assets) × 2 B) Average total assets = (Beginning total assets – Ending total assets) × 2 C) Average total assets = (Beginning total assets – […]

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Date: September 2nd, 2020

Assume MetAmbit Corporation had a net income of $2,300 for t

Assume MetAmbit Corporation had a net income of $2,300 for the year ending December 2016. Its beginning and ending total assets were $33,500 and $18,000, respectively. Calculate MetAmbit’s return on assets (ROA ) (Round your percentage answer to two decimal places.) A) 6.87% B) 12.78% C) 8.93% D) 4.47% ANSWER C

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Date: September 2nd, 2020

Johnson Repair Service had net income for the year of $125,0

Johnson Repair Service had net income for the year of $125,000. In addition, the balance sheet reports the following balances: Jan. 1, 2016 Dec 31, 2016 Accounts Receivable $ 5,600 $ 14,200 Accounts Payable 12,000 9,500 Building 125,000 125,000 Cash 37,500 35,000 Office Furniture 25,000 50,000 Office Supplies 3,200 1,500 Notes Payable 60,000 75,000 Total […]

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Date: September 2nd, 2020

Frazier Service Company had a net income of $14,500 for the

Frazier Service Company had a net income of $14,500 for the year ending December 31, 2016. The total assets on January 1, 2016 were $28,000. The total assets on December 31, 2016 were $16,000. Calculate Frazier’s return on assets (ROA ) Show your computations and label your work. Round your answer to one decimal place. […]

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Date: September 2nd, 2020

Which is a true statement regarding the accounting equation?

Which is a true statement regarding the accounting equation? A) The equation can be stated as assets minus liabilities equals equity. B) The equation consists of three parts: assets, liabilities, and net income. C) The equation is an optional tool for accountants to use. D) The equation does not need to balance during a specific […]

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Date: September 2nd, 2020