1. The return on investment measure of performance: A. Is relevant only to busin

Question

1. The return on investment measure of performance:

A. Is relevant only to business enterprises.

B. Is used by individuals to compare investment performance.

C. Is calculated using sales as the amount of return.

2. A current ratio of 6 is usually an indication that the firm:

A. Has a low degree of liquidity.

B. Has a reasonable degree of liquidity.

C. Has not made the most productive use of its assets

3. A firm's net income for the year was $200,000. Average assets totaled $1.5 million, and average liabilities totaled $0.3 million. Return on equity was:

A. 13.3%

B. 16.7%

C. 10%

4. A newspaper ad submitted and published this week, with the agreement to pay for it next week would, in the newspaper's records:

A. Increase assets and increase revenues.

B. ncrease assets and increase expenses.

C. Have no effect on total assets.

5. To accrue $5,500 of employee salaries for the last week of February, the employer's journal entry is:

A. Dr Salaries expense

Explanation / Answer

1) B

2) C

3) B

4) A

5) B

6) DATA INCOMPLETE

7) C

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