Which of the following is the correct formula for calculating rate of return on total assets?
A) (Net income + Interest expense) / Average total assets
B) (Net income - Interest expense) / Average total asset
C) (Net income - Interest expense) / Total assets
D) Total equity / Total assets
A) (Net income + Interest expense) / Average total assets
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Which of the following is not one of the forces that affects industry competition, according to Porter's model for industry analysis?
A. Threats of new entrants. B. Threats of substitute products and services. C. Bargaining power of buyers. D. Threats of government interference. E. Bargaining power of suppliers.
______ effects decision-making when someone decides to continue an unwise investment based on past investments of time, effort, or money.
What will be an ideal response?
According to Herman, one of the differences of managing a nonprofit versus a for-profit corporation is that nonprofit organizations ______
A. make decisions that are consistent with the mission and ethical values of the organization B. do not make a profit C. do not pay federal taxes D. do not charge customers for services
The ending Merchandise Inventory for the current accounting period is understated by $2,700. What effect will this error have on Cost of Goods Sold and Net Income for the current accounting period?
A) Cost of Goods Sold Net Income Understated Understated B) Cost of Goods Sold Net Income Overstated Overstated C) Cost of Goods Sold Net Income Understated Overstated D) Cost of Goods Sold Net Income Overstated Understated