139. If the liabilities of a company increased $74,000 during a period of time and equity in the…

 
   

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139. If
the liabilities of a company increased $74,000 during a period of time and
equity in the company decreased $19,000 during the same period, what was the
effect on the assets?

A. Assets would have
increased $55,000. B. Assets would have decreased $55,000. C. Assets would have
increased $19,000. D. Assets would have decreased $19,000.E. None of these.

140.
If a company paid
$38,000 of its accounts payable in cash, what was the effect on the assets,
liabilities, and equity?

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 would not change.
D. There would be no effect on the
accounts because the accounts are affected by the same amount.
E.
None of these.

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Chapter
01 – Accounting in Business

143.
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.

144.
Reston had income of
$150 million and average invested assets of $1,800 million. Its return on
assets is:

A. 8.3%. B. 83.3%. C.
12%.

D. 120%. E. 16.7%.

145.
Nick’s had income of
$350 million and average invested assets of $2,000 million. Its ROA is:

A.
1.8%. B. 35%. C. 17.5%. D. 5.7%. E. 3.5%.

146. FastLane
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%.

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Chapter
01 – Accounting in Business

147. Harris
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%

148. U. S.
government 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.

149.
Risk is:
A.
Net income divided by average total assets. B. The reward for investment.

C.
The uncertainty about the expected return to be earned. D. Unrelated to
expected return.
E.
Derived from the idea of getting something back from an investment.

150.
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.