Clairmont Industries reported net income of $283,000, average total assets of $637,000, and comprehensive income of $354,172. The return on total assets is:
A. 61.5%.
B. 44.4%.
C. 88.8%.
D. 125.1%.
E. 55.6%.
Answer: B
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A) Icon B) Graphic C) Photograph D) Sentence
High Step Shoes had annual revenues of $190,000, expenses of $106,200, and dividends of $20,000 during the current year. The retained earnings account before closing had a balance of $302,000. The entry to close the Income Summary account at the end of the year, after revenue and expense accounts have been closed, is:
A. Debit Income Summary $83,800, credit Retained earnings $83,800 B. Debit Retained earnings $83,800, credit Income Summary $83,800 C. Debit Retained earnings $302,000; credit Income Summary $302,000 D. Debit Income Summary $63,800; credit Retained earnings $63,800 E. Debit Retained earnings $63,800; credit Income Summary $63,800
David, a financial accountant at a multinational company, is asked to study the comparative financial statements of a prospective partner firm. He uses comparative income statements to determine the changes in the assets and liabilities of the firm and whether the net income of the firm has increased or decreased over the past five years. In this scenario, David is most likely using _____.
A. activity-based costing B. horizontal analysis C. a statistical syllogism D. static analysis
A firm with a very low debt-equity ratio has a low risk of defaulting on its loans
Indicate whether the statement is true or false.