Cash reserves on the Tri-State Medical Equipment Corporation's balance sheet presently amount to $111,200. When Tri-State pays cash for 20% of the purchase price of a new delivery truck, the cash payment will: 1) increase the company's cash reserves. 2) decrease cash on the balance sheet. 3) require an entry on the Statement of Retained Earnings. 4) require an entry to the Reserve for Depreciation on the income statement. 2. If an organization has operating income of $120,000, net income of $150,000, total revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000, return on assets is: 1) 6.0%. 2) 7.5%. 3) 12.0%. 4) 15.0%. 5) 30.0%.

Cash reserves on the Tri-State Medical Equipment Corporation's balance sheet presently amount to $111,200. When Tri-State pays cash for 20% of the purchase price of a new delivery truck, the cash payment will: 1) increase the company's cash reserves. 2) decrease cash on the balance sheet. 3) require an entry on the Statement of Retained Earnings. 4) require an entry to the Reserve for Depreciation on the income statement. 2. If an organization has operating income of $120,000, net income of $150,000, total revenue of $2,000,000, total assets of $1,000,000, and a net worth of $500,000, return on assets is: 1) 6.0%. 2) 7.5%. 3) 12.0%. 4) 15.0%. 5) 30.0%.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13MCQ

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