Quick Computer Service Had Net Income for the Year of $30,000.Its

question 222

Essay

Quick Computer Service had net income for the year of $30,000.Its assets at the beginning of the year were $400,000.At the end of the year,assets were worth $450,000.Calculate its return on assets.

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Definitions:

Withholdings

The portion of an employee's earnings that is deducted and sent directly to the government by the employer for tax purposes.

Salaries Expense

The total amount paid to employees in salary form over a specified accounting period, considered an operating expense.

Notes Payable

Short-term or long-term liabilities representing amounts owed for borrowed funds, documented by a promissory note.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.