A firm with sales of $1,000,000, net profits after taxes of $30,000, total assets of $1,500,000, and common stockholders' investment of $750,000 has a return on equity of ________
A) 20 percent
B) 15 percent
C) 3 percent
D) 4 percent
D
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Declining profitability and liquidity ratios are indications that a company may not survive
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The bookkeeper recorded a payment by check for the purchase of store supplies as a debit to Store Supplies and a credit to Cash for $1,340.56 . The check was recorded by the bank at its correct amount of $3,140.56 . Prior to the preparation of the bank reconciliation, the error would cause:
a. the trial balance to be out of balance. b. the Accounts Payable account to be understated. c. the Cash account to be understated. d. the Store Supplies account to be overstated. e. a possibility that the checking account might become overdrawn.
Readymade Construction Corporation offers to buy from Set-Still Cement Company a certain quantity of cement for a certain price. Set-Still can accept the offer by
A. a material alteration of the terms within a reasonable time. B. a promise to ship or a prompt shipment of the cement. C. a prompt shipment of the cement only. D. a shipment of nonconforming goods with a notice of accommodation.
Airline flights to ski areas near Denver, Colorado, probably have different means and variances throughout the year. This is an example of dynamic demand
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