The Following Statement of Financial Position and Statement of Comprehensive

question 202

Multiple Choice

The following statement of financial position and statement of comprehensive income should be used. What is Woodburn's return on assets for 2018?

• A) 18.50 %
• B) 18.67 %
• C) 19.89 %
• D) 20.18 %
• E) 20.70 %

---

Definitions:

Common Stock Account

An equity account on a company's balance sheet representing the total amount of money invested by common stockholders plus the retained earnings of the company.

Common Stock Dividend

A portion of a company's earnings distributed to common shareholders, typically in the form of cash or additional shares.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment in the business, or to pay debt, rather than being paid out as dividends.

Additional Paid-In Capital

The excess amount paid by investors over the par value of shares, reflecting the additional capital contributed to a corporation.