The return on assets ratio

Assignment Help Financial Accounting
Reference no: EM131205526

The return on assets ratio

1. considers the investments made by all creditors and stockholders of the company.

2. reflects investments made only by creditors of the company.

3. is based on average stockholders' equity as compared to net income for the period.

4. is a measure of the company's liquidity.

Reference no: EM131205526

Questions Cloud

Certified public accountant-cash flows statement : You are a certified public accountant (CPA) and one of your clients has asked you to explain the statement of cash flows statement because the client's bank is requesting one. Explain this statement to the client and include a brief description of th..
Tax return problem : Tax Return Problem Brian and Corinne Lee are married taxpayers, filing jointly. They live in the home they own located at 3301 Pacific Coast Hwy, Laguna Beach, CA 92701. Brian is an optometrist who owns his own business and Corinne is a social worker..
Sales invoice is a type of source document : All of the following statements regarding a sales invoice are true except: A sales invoice is a type of source document. A sales invoice is used by sellers to record the sale and for control. A sales invoice is used by buyers to record purchases and ..
Identify the general journal entry : Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record the transaction. Cash 40,000 Common Stock 40,000 Common Stock..
The return on assets ratio : The return on assets ratio
What should have been corrected was a licenses expense : On a May bank reconciliation, an amount is required to be added with the bank statement balance because in April (now closed out) a correction entry was not done in the general ledger. Because the accountant did not make the correction entry, the amo..
The quick ratio differs from the current ratio : The quick ratio differs from the current ratio in that it
Assume that the preferred are noncumulative : Nottebart Corporation has outstanding 10,800 shares of $110 par value, 6% preferred stock and 61,300 shares of $19 par value common stock. Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive?  Assume..
Present value of a perpetual stream of cash flows : What is the present value of a perpetual stream of cash flows that pays $80,000 at the end of one year and grows at a rate of 7% indefinitely? the rate of interest used to discount the cash flow is 9%. What is the present value of the growing perpetu..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the amount of the corporations loss

Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda's basis in her stock is $25,000. On July 31, 2014, Bill sells his stock, with a basis of $40,000, to Loraine for $50,000. For the 2014 tax year, Radiata..

  Total payroll of walnut co was 184000 of which 320000

total payroll of walnut co. was 184000 of which 320000 represented amounts paid in excess of 106800 to certain

  Identify and analyze all transactions on chicago books

Identify and analyze all transactions on Chicago's books in connection with its investment, beginning with the purchase of the preferred stock on October 1, 2010; the dividend received on October 20, 2010; and the sale on November 5, 2010.

  Subsequent transfers to corporation

John organized Toucan Corporation 10 years ago. He contributed property worth $1,000,000 (basis of $200,000) for 2,000 shares of stock in Toucan (representing 100% ownership). John later gave each of his children, Julie and Rachel, 500 shares of the ..

  Prepare the stockholders equity section of the balance sheet

Prepare the stockholders equity section of the balance sheet, for Penn Company as of June 30, 2015, as it should appear in its annual report to the shareholders.

  S corporation tax return problem

S CORPORATION TAX RETURN PROBLEM Required: Using the information provided below, complete Salt Source Inc. s (SSI) latest Form 1120S - Of the $5,000 interest income, $2,000 was from a West Jordan city bond used to fund public activities (issued in ..

  Chain eastern airlines corporation limited arranges a set

chain eastern airlines corporation limited arranges a set of financial statements in accordance with ifrs. until 2007

  Prepare the current assets section of the balance sheet

Prepare an income statement through gross profit and prepare the current assets section of the balance sheet at June 30, 2012.

  Analysis of the unit manufacturing costs of product

The controller for Traditional Manufacturing Inc. performed a trend analysis of the unit manufacturing costs of product T-2 for the month of March. Two patterns emerged; there was a gradual upward trend in the unit costs over the month for T-2 and th..

  Compute each projects accounting rate of return

Most Company has an opportunity to invest in one of two new projects. Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. Project Z requires a $350,000 investment for new machinery with a three-year ..

  Evaluate the product factory overhead costs

Evaluate the product factory overhead costs, using (a) the direct labor hours plant-wide factory overhead rate and (b) the machine hour plant-wide factory overhead rate.

  1 the accounting for assets both current and long-term has

1. the accounting for assets both current and long-term has changed significantly since the inception of the fasb.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd