Question 2 - Leverage is

	the ability to earn a satisfactory return on the investments in the business.
	the proportion of debt to stockholders' equity.
	the ability to pay current debts when they come due.
	also called profit margin.

Question 3 - The net income of a company is $175,000. The average book value of the company's assets is $1,300,000. The return on total assets would be

	20.00%.
	7.43%.
	600.00%.
	13.46%.

Question 7 - Departmental reports are useful to management for all of the following purposes EXCEPT

	planning.
	controlling.
	determining revenues generating potential.
	determining performance potential.

Question 10 - A department may gather operating expense data by maintaining

	direct expenses.
	indirect expenses.
	amounts allocated to each department.
	total operating expenses for each department.