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 – […]
Date: September 2nd, 2020
The return on assets is calculated by ________. A) subtracting net income from average total assets B) adding net income and average total assets C) dividing net income by average total assets D) multiplying net income and average total assets ANSWER C
Date: September 2nd, 2020
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
Date: September 2nd, 2020
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 […]
Date: September 2nd, 2020
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
