1) A company is looking to increase its Return on Assets (ROA). What is one way to do this?

Increase debt

Reduce asset turnover

Decrease total assets

Decrease profit margin

2) Assume a company purchases new equipment, paying $100 for shipping costs. A few months later, the company incurs $250 for repairs and maintenance. How should the shipping and repairs and maintenance costs be handled?

The shipping costs should be capitalized, and the repairs and maintenance costs should be expensed.

Both the shipping and repairs and maintenance costs should be expensed.

The shipping costs should be expensed, and the repairs and maintenance costs should be capitalized.

Both the shipping and repairs and maintenance costs should be capitalized.