River Corp's Total Assets at the End of Last Year

question 13

Multiple Choice

River Corp's total assets at the end of last year were $320,000 and its net income was $32,750.What was its return on total assets?

• A) 8.90%
• B) 8.70%
• C) 10.23%
• D) 7.68%
• E) 9.72%

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Definitions:

Contra-Asset

An account displayed on the balance sheet that reduces the value of a related asset, such as accumulated depreciation.

Liability

Financial obligations, debts, or responsibilities owed by a business to others, to be settled over time through the transfer of economic benefits.

Invoice Approval Form

Used by the accounting department in checking the invoice and finally approving it for recording and payment.

Purchasing Department

A division within a business that is responsible for acquiring goods and services that are necessary for the company's operations.