Use This Balance Sheet and Income Statement to Answer the Following

question 101

Multiple Choice

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The return on assets for National Textile is

• A)30 percent.
• B)150 percent.
• C)33-1/3 percent.
• D)24 percent.

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Definitions:

Trial Balance

A ledger summary sheet where the sums of all accounts are organized into equal columns for both debits and credits.

Error

A mistake in recording financial data, which can be due to miscalculation, oversight, or misunderstanding of accounting principles.

Ledger

A book or other collection of financial accounts of a particular type or for a specific purpose in accounting.

Journal

A formal record where all financial transactions of a business are initially recorded, date-wise, before being posted to the general ledger.