Question: Revenues are a measure of the inflows of assets (or reductions in liabilities) from selling goods and providing services to customers. Which of the following is NOT a revenue transaction?
A
Sale of merchandise for cash to a customer
B
Sale of merchandise on account to a customer
C
Delivery of weekly magazines to a subscriber who previously paid for a one-year subscription
D
Borrowing money from a local bank to be used in the business
Question: The _______________ is used to indicate the relative protection of bondholders and to assess the probability of a firm's failing to meet required interest payments.
Question: XYZ Company reports total assets and total liabilities of $425,000 and $200,000, respectively, at the conclusion of its first year of business. The company earned $95,000 during the first year and distributed $50,000 in dividends. What was the firm's contributed capital?
Question: In computing the rate of return on assets, interest expense net of income tax savings is added to net income. Assume that XYZ Company has interest expense of $20 million and net income of $50 million. Assume that the income tax rate is 40 percent. In computing the rate of return on assets, what would the numerator be?