The Following Data Represent Selected Information from the Comparative Income

question 72

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Dunkin Company for the years ended December 31, 2011 and 2010: The rate of return on total assets for Dunkin Company for 2011, was closest to:

• A)1)87.
• B)0)54.
• C)0)39.
• D)1)82.

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Definitions:

Dividends Payable

A liability account in a company's balance sheet indicating the amount in dividends that the company owes to its shareholders but has not yet paid out.

Operating Expenses

Expenses incurred from a company's operational activities, excluding the cost of goods sold, taxes, and interest expenses.

Dividends Declared

Profits that a company's board of directors has decided to distribute to shareholders in the form of dividends.

Income Tax Expense

The cost of income taxes a company incurs, reflecting the tax charged on its taxable income for a given period.