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. […]
Date: September 2nd, 2020
What is the calculation for return on assets (ROA )? What does ROA measure? What will be an ideal response ANSWER Return on Assets = Net income / Average total assets. ROA measures how profitably a company uses its assets.
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
An accounts receivable requires the business to pay cash in the future. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The account title used for recording the payment of rent in advance for an office building is ________. A) Prepaid Rent B) Rent Payable C) Rent Revenue D) Rent Expense ANSWER A
Date: September 2nd, 2020
The statement of retained earnings informs users about how much of the earnings were kept and reinvested in the company. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
A customer’s promise to pay in the future for services or goods sold is called a(n) ________. A) Accounts Receivable B) Accounts Payable C) Unearned Revenue D) Notes Payable ANSWER A
Date: September 2nd, 2020
The relative proportion of economic resources and obligations would be shown by the balance sheet. Indicate whether the statement is true or false ANSWER TRUE
Date: September 2nd, 2020
Which of the following is an asset account? A) Wages Payable B) Notes Payable C) Unearned Revenue D) Accounts Receivable ANSWER D
Date: September 2nd, 2020
The balance sheet helps analyze the business performance in terms of profitability. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
