A) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
B) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
C) Assets would decrease $38,000, liabilities would decrease $38,000, and equity remains unchanged.
D) There would be no effect on the accounts because the accounts are affected by the same amount.
E) Assets would increase $38,000 and liabilities would decrease $38,000.
148) If assets are $365,000 and equity is $120,000, then liabilities are:
A) $120,000.
B) $245,000.
C) $365,000.
D) $485,000.
E) $610,000.
149) Rushing had net income of $240 million and average total assets of $2,000 million. Its return on assets is:
A) 12%.
B) 120%.
C) 80%.
D) 8%.
E) 800%.
150) Cage Company had net income of $160 million and average total assets of $2,000 million. Its return on assets (ROA) is:
A) 80%.
B) 0.8%.
C) 8%.
D) 12.5%.
E) 125%.
151) Speedy has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.
A) 7.7%.
B) 8.5%.
C) 9.5%.
D) 11.8%.
E) 13.0%.
152) Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.
A) 8.4%.
B) 17.2%.
C) 14.3%.
D) 15.6%.
E) 1.5%.
153) U. S. treasury bonds are:
A) High-risk and high-return investments.
B) Low-risk and low-return investments.
C) High-risk and low-return investments.
D) Low-risk and high-return investments.
E) High risk and no-return investments.
154) Risk is:
A) Net income divided by average total assets.
B) The reward for investment.
C) The uncertainty about the return we will earn.
D) Unrelated to return expected.
E) Derived from the idea of getting something back from an investment.
155) The statement of cash flows reports all of the following except:
A) Cash flows from operating activities.
B) Cash flows from investing activities.
C) Cash flows from financing activities.
D) The net increase or decrease in assets for the period reported.
E) The net increase or decrease in cash for the period reported.
156) The basic financial statements include all of the following except:
A) Balance Sheet.
B) Income Statement.
C) Statement of Owner's Equity.
D) Statement of Cash Flows.
E) Statement of Changes in Assets.
157) The statement of owner's equity:
A) Reports how equity changes at a point in time.
B) Reports how equity changes over a period of time.
C) Reports on cash flows for operating, financing, and investing activities over a period of time.
D) Reports on cash flows for operating, financing, and investing activities at a point in time.
E) Reports on amounts for assets, liabilities, and equity at a point in time.
158) The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
A) Balance sheet.
B) Statement of owner's equity.
C) Statement of cash flows.
D) Income statement.
E) Statement of financial position.
159) A balance sheet lists:
A) The types and amounts of the revenues and expenses of a business.
B) Only the information about what happened to equity during a time period.
C) The types and amounts of assets, liabilities, and equity of a business as of a specific date.
D) The inflows and outflows of cash during the period.
E) The assets and liabilities of a company but not the owner's equity.
160) A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):
A) Balance sheet.
B) Income statement.
C) Statement of cash flows.
D) Statement of owner's equity.
E) Financial Status Statement.
161) The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:
A) Statement of financial position.
B) Statement of cash flows.
C) Balance sheet.
D) Income statement.
E) Statement of changes in owner's equity.
162) The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner; net income (or net loss); withdrawals; and the ending balance, is the: