0) Flitter reported net income of $17,500 for the past year. At the beginning of the year the 10)_ company had $200,000 in assets and $50,000 in liabilities. By the end of the year, assets had increased to $300,000 and liabilities were $75,000. Calculate its return on assets: C) 8.8% A) 7.0% B) 23.3% D)35.0% E) 5.8% 11) If a company is considering the purchase of a parcel of land that was acquired by the 1)_ seller for $85,000, is offered for sale at $150,000, is assessed for tax purposes at $95,000, is recognized by the purchaser as easily being worth $140,000, and is purchased for $137,000, the land should be recorded in the purchaser's books at: $150,000. $138,500. )$140,000. D) $95,000. E) S137,000. 12) The rule that requires financial statements to reflect the assumption that the business 12) will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: A) Going-concern assumption. B) Cost Principle. C) Business entity assumption. D) Monetary unit assumption. E) Objectivity principle. 13) 13) Contessa Company collected $42,000 cash on its accounts receivable. Th effects of this transaction as reflected in the accounting equation are: A) Both total assets and equity are unchanged and liabilities Both total assets and total liabilities decrease. C) Neither assets, total liabilities, nor equity are changed. D) Total assets decrease and equity increases. E) Total assets increase and equity decreases. 14) 14) The description of the relation between a company's assets,liabilities, and equity, which is expressed as Assets Liabilities+ Equity, is known as the A) Accounting equation. B) Net income. Return on equity ratio. D) Income statement equation. E) Business equation