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