The Following Are Selected Accounts and Account Balances of Gorr

question 57

Essay

The following are selected accounts and account balances of Gorr Company on December 31:
$\begin{array}{lccc}& \text { Permanent ( \( P \) )} & \text { Normal Balance } \\& \underline{\text { or Temporary(T) }} &\underline{ \text { Dr. (Cr.) } }\\ \text { Inventory } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Land } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Wages Payable } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Capital Stock } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Retained Earnings } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Revenues} &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Dividends } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\\ \text { Advertising Expense } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\end{array}$

Required:
a.Indicate whether the account is a permanent (P)or temporary (T)account.
b.Indicate the normal balance in terms of debit (Dr. )or credit (Cr. ).

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Definitions:

Gross Margin Ratio

A financial metric that measures the difference between revenue and cost of goods sold, expressed as a percentage of revenue.

Return On Total Assets

Return On Total Assets (ROTA) is a financial metric used to assess a company's profitability by comparing net income to its total assets. It illustrates how efficiently a company uses its assets to generate profit.

Return On Common Stockholders' Equity

A measure of a corporation's profitability by disclosing how much profit a company generates with the money shareholders have invested.

Book Value Per Common Share

This is the equity available to common shareholders divided by the number of outstanding common shares, representing the per-share value of a company.