Garrott Corporation's Total Assets Were $1,505,000 at the End of Year

question 159

Multiple Choice

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.

-The company's return on total assets for Year 2 is closest to:

• A) 2.09%
• B) 2.08%
• C) 1.67%
• D) 1.66%

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Definitions:

Deserved

Earned or merited based on actions, behavior, or qualifications.

Essential Terms

Fundamental conditions or clauses in a contract that are critical to its enforcement and interpretation.

Clearly Specified

means stated or described in a manner that leaves no ambiguity regarding the details or requirements.

Past Consideration

Anything given or promised to be given in the past, which cannot be considered valuable in the context of forming a current contract.