The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively

The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively.
What is Paradise Pizza's profit margin?

A) 15%.

B) 14.12%.

C) 16%.

D) 12%.

Answer: D

The balance sheet of Paradise Pizza reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively.
What is Paradise Pizza's return on assets?

A) 15%.

B) 14.12%.

C) 16%.

D) 12%.

Answer: A

Return on assets is equal to:

A) Profit margin plus asset turnover.

B) Profit margin minus asset turnover.

C) Profit margin times asset turnover.

D) Profit margin divided by asset turnover.

Answer: C

Losses on the sale of long-term assets for cash:

A) Are the excess of the book value over the cash received.

B) Are recorded as a credit.

C) Are reported on a net-of-tax basis, if material.

D) Are the excess of the cash received over the book value.

Answer: A

Gains on the sale of long-term assets for cash:

A) Are the excess of the book value over the cash received.

B) Are recorded as a debit.

C) Are reported on a net-of-tax basis, if material.

D) Are the excess of the cash received over the book value.

Answer: D

Return on assets is calculated as:

A) Net Income divided by total assets.

B) Net Income divided by average total assets.

C) Net Income divided by ending total assets.

D) Ending total assets divided by net income.

Answer: B