Acct 505 Week 6 Quiz

Acct 505 Week 6 Quiz

1. Question : (TCO D) A company that has a profit can increase its return on investment by

Student Answer: increasing sales revenue and operating expenses by the same dollar amount.
increasing average operating assets and operating expenses by the same dollar amount.
increasing sales revenue and operating expenses by the same percentage.
decreasing average operating assets and sales by the same percentage.
Instructor Explanation: Chapter 12






2. Question : (TCO D) Given the following data, what would ROI be?
Sales $50,000
Net operating income   $5,000
Contribution margin $20,000
Average operating assets $25,000
Stockholder's equity $15,000


Student Answer: 10%

20%

16.7%

80%

Instructor Explanation: See Chapter 12. ROI = Net operating income / Average operating assets = $5,000 / $25,000 = 20.0%






3. Question : (TCO D) Given the following data: What is the return on the investment (ROI)?
Sales $50.000
Net operating income $5,000
Contribution margin $20,000
Average operating assets $25,000
Stockholder's equity $15,000


Student Answer: 10%

20%

16.7%

80%

Instructor Explanation: ROI = Net operating income / Average operating assets = $5,000 / $25,000 = 20.0%






Grade Details - All Questions
1. Question : (TCO D) Seebach Corporation has two major business segments—Apparel and Accessories. Data concerning those segments for June appear below.
Sales revenues, Apparel $700,000
Variable expenses, Apparel $406,000
Traceable fixed expenses, Apparel $98,000
Sales revenues, Accessories $710,000
Variable expenses, Accessories $312,000
Traceable fixed expenses, Accessories $107,000

Common fixed expenses totaled $292,000 and were allocated as follows: $155,000 to the Apparel business segment and $137,000 to the Accessories business segment.

Required:

Prepare a segmented income statement in the...

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