A Purchases Journal Entry Will Not Balance If We -

question 7

Multiple Choice

A purchases journal entry will not balance if we -

• A) omit one of two items that were purchased
• B) omit the HST paid
• C) omit the freight charge
• D) this entry will balance whether or not we omit any of the above items

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Definitions:

Return On Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's profitability.

Total Assets

The summation of all resources owned by an entity, valued based on historical cost or market value, represented in the balance sheet.

Return On Assets Ratio

The Return on Assets Ratio is a financial metric used to assess how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.