1. The return on investment measure of performance:

Is relevant only to business enterprises.

Is used by individuals to compare investment performance.

Is calculated using sales as the amount of return.

2. A current ratio of 6 is usually an indication that the firm:

Has a low degree of liquidity.

Has a reasonable degree of liquidity.

Has not made the most productive use of its assets

3. A firm's net income for the year was $200,000. Average assets totaled $1.5 million, and average liabilities totaled $0.3 million. Return on equity was:

13.3%

16.7%

10%

4. A newspaper ad submitted and published this week, with the agreement to pay for it next week would, in the newspaper's records:

Increase assets and increase revenues.

Increase assets and increase expenses.

Have no effect on total assets.

5. To accrue $5,500 of employee salaries for the last week of February, the employer's journal entry is:

Dr Salaries expense