accounting

[crazecheeca]

1. a firms net income for the year was $400,000. average assets totaled $3 million, and average liabilities totaled $0.6 million. Return on equity was:
a. 13.3%
b. 10%
c. 16.7%
d. 20%

2. If a firm borrowed money on a six-month bank loan, the firm's working capital immediately after obtaining the loan, relative to its working capital just rior to the loan would be:
a. higher
b.the same
c. lower
d. would depend on the amount borrowed

3. a firm's net income is $260,000 on sales of $31.5 million. average assets for the period were $7million. for the year:
a. margin was 0.83%, turnover was 4.5 , and ROI was 3.7%
b. margin was 6%, turnover was 1.5, and ROI was 6%
c. margin 4%, turnover 1.2, and ROI 4.8%
d. margin was 5%, turnover 1.2, n ROI was 6%

4. Wisdom Company has a note payabl to its bank.An ajustment is likely to be required on Wisdom's books at the end of every month that the loan isoutstnding to record the:
a. amount of interest paid during the month
b.amount of total interest to be paid when the note is paid off
c. amount of principal payable at the maturity date of the note
d. accured interest expense for the month

[factor-fiction]

Is this a whole term's work you're catching up on?

Common sense suggests:

1. is c , 16.7% (�400,000 as percentage of �2.4 million)

3. can only be a ($31.5m/$7 =4; $260,000 is 3.7% of $7m)

[factor-fiction]

Is this a whole term's work you're catching up on?

Common sense suggests:

1. is c , 16.7% (�400,000 as percentage of �2.4 million)

3. can only be a ($31.5m/$7 =4.5; $260,000 is 3.7% of $7m)

[factor-fiction]

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