Question 1.1.Using the following data for Stevenson Industries, compute the return on assets ratio.

Net Income	$ 120,000
Total Assets 12/31/12	2,410,000
Total Assets 12/31/11	1,980,000
Net Sales	250,000

(Points : 1)

5.0% 10.4% 5.5% 11.4%

Question 2.2.Units-of-activity is an appropriate depreciation method to use when (Points : 1)

it is impossible to determine the productivity of the asset. the asset's use will be constant over its useful life. the productivity of the asset varies significantly from one period to another. the company is a manufacturing company.

Question 3.3.All of the following are examples of internal control procedures except (Points : 1)

using prenumbered documents. reconciling the bank statement. customer satisfaction surveys. insistence that employees take vacations.

Question 4.4.Interest is usually associated with (Points : 1)

accounts receivable. notes receivable. doubtful accounts. bad debts.

Question 5.5.Short-term notes receivable (Points : 1)

have a related allowance account called Allowance for Doubtful Notes Receivable. are reported at their gross realizable value. use the same estimations and computations as accounts receivable to determine cash realizable value. present the same valuation problems as long-term notes receivables.

Question 6.6.Notes or accounts receivables that result from sales transactions are often called (Points : 1)

sales receivables. non-trade receivables. trade receivables. merchandise receivables.

Question 7.7.Cost allocation of an intangible asset is referred to as (Points : 1)

amortization. depreciation. accretion. capitalization.

Question 8.8.When an asset is sold, a gain occurs when the (Points : 1)

sale price exceeds the book value of the asset sold. sale price exceeds the original cost of the asset sold. book value exceeds the sale price of the asset sold. sale price exceeds the depreciable cost of the asset sold.

Question 9.9.Goodwill (Points : 1)

is only recorded when generated internally. can be subdivided and sold in parts. can only be identified with the business as a whole. can be defined as normal earnings less accumulated amortization.

Question 10.10.Mitchell Corporation bought equipment on January 1, 2012 .The equipment cost $120,000 and had an expected salvage value of $20,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is (Points : 1)

$120,000. $100,000. $20,000. $16,667.