1. Hind Inc has net sales of $100,000 and net income of $20,000 in 2018. 2017 ending assets are $40,000. 2018 ending assets are $60,000. How much is Hind Inc's 2018 return on assets?

a. 0.33 b. 0.4 c. 2 d. 2.5

2. A reasonably estimable contingent liability of $10,000 has a 75% chance of taking place. A reasonably estimable contingent asset of $10,000 has a 75% chance of taking place. The contingent liability should ______ and the contingent asset should _____.

a. be reported as a liability (provision); be reported as an asset (no longer contingent) b. be reported as a liability (provision); be disclosed c. be disclosed; be disclosed d. be disclosed; be not disclosed