Question :
111. Oregon Adventures purchased equipment for $80,000. They sold the : 1255959
111. Oregon Adventures purchased equipment for $80,000. They sold the equipment at the end of three years for $45,000. If the expected useful life of the equipment was seven years with a residual value of $10,000, and they use straight-line depreciation, which of the following is true regarding the entry to record the sale of the equipment?
a.
Debit Loss $5,000.
b.
Credit Gain $5,000.
c.
Credit Accumulated Depreciation $40,000.
d.
Credit Equipment $5,000.
112. Return on assets is calculated as:
a. Net Income divided by total assets.
b. Net Income divided by average total assets.
c. Net Income divided by ending total assets.
d. Ending total assets divided by net income.
113. Return on assets is equal to:
a. Profit margin plus asset turnover.
b. Profit margin minus asset turnover.
c. Profit margin times asset turnover.
d. Profit margin divided by asset turnover.
114. The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. Net income and sales for the year are $85,000 and $1,700,000, respectively. What is Purdy’s return on assets?
a.
10%.
b.
20%.
c.
200%.
d.
5%.
115. The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. Net income and sales for the year are $85,000 and $1,700,000, respectively. What is Purdy’s profit margin?
a.
5%.
b.
10%.
c.
20%.
d.
50%.
116. The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. Net income and sales for the year are $85,000 and $1,700,000, respectively. What is Purdy’s asset turnover?
a.
0.5 times.
b.
20.0 times.
c.
10.0 times.
d.
2.0 times.
117. The balance sheet of Purdy’s BBQ reports total assets of $800,000 and $900,000 at the beginning and end of the year, respectively. The return on assets for the year is 20%. What is Purdy’s net income for the year?
a.
$4,500,000.
b.
$170,000.
c.
$4,250,000.
d.
$85,000.
118. The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively. What is Hidden Valley’s return on assets?
a.
10%.
b.
20%.
c.
160%.
d.
18%.
119. The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively. What is Hidden Valley’s profit margin?
a.
10%.
b.
12.5%.
c.
18%.
d.
22%.
120. The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively. What is Hidden Valley’s asset turnover?
a.
1.6 times.
b.
1.8 times.
c.
1.5 times.
d.
0.2 times.
