Tom's Tool Factory Is an Investment Center and Is Responsible

question 87

Multiple Choice

Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, the invested assets totaled $475,000, and net income was $275,000. What is the return on investment?

• A) 57.9%
• B) 172.3%
• C) 5.0%
• D) 115.0%

Identify the role of owner's withdrawals and their impact on owner's equity.

Recognize how revenue is earned and reported in financial statements.

Distinguish between different types of transactions, including those that are not considered business transactions.

Comprehend the basic principles of asset and liability management.

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Definitions:

Basic Mathematical Skills

entail fundamental mathematics abilities and knowledge, such as addition, subtraction, multiplication, and division, necessary for daily functions and higher math learning.

Instructional Discourse

The structured communication or dialogue that takes place within an educational setting, aiming to facilitate learning and understanding of complex concepts.

Evaluation

The systematic assessment of a program, process, intervention, or system to determine its effectiveness, efficiency, impact, or quality.

Conversation

The exchange of thoughts, opinions, or information between two or more people, typically involving verbal communication.