21.

You are the owner of a small, but very successful, local bookstore, that sells both new and used books. For the previous quarter, your sales totaled $150,000, and your assets (both current and noncurrent) are $250,000. Your business had the following expenses: $15,000 in wages; $10,000 in supplies; and $5,000 in utilities. What is your ROA?

• 20%
• 48%
• 60%
• 12%

22.

You are the owner of a small, but successful, local bookstore that sells both new and used books. You lease the building in which your store is located, and own all of the current inventory as well as the bookshelves, cash registers, etc. The total value of your inventory and equipment is $15,000. You currently have $1,500 in the bank, your annual expenses are $12,000, and the amount of equity you have in the business is $4,500. Are your finances balanced?

$16,500 > $7,500; no, my finances are not balanced

I have no idea.

There is not enough information provided to determine the answer to this question.

$16,500 = $16,500; yes, my finances are balanced

23.

You are the owner of a small portrait photography business. You have recently traded in one of your older cameras for a new one, and now need to calculate whether you experienced a gain or loss on the exchange of that asset. The camera was purchased originally at $7,500 and its accumulated depreciation is $2,500. A local camera store gave you $3,000 in trade in value on the purchase of a new camera for $10,000, the balance of which you paid in cash. Calculate the amount of gain or loss on the exchange.

• $500; gain on exchange
• $2,000; loss on exchange
• $2,000; gain on exchange
• $500; loss on exchange

24.

Which of the following is an example of a gain contingency?

• a favorable settlement in a lawsuit, to which the other party has exhausted all appeals
• an ongoing IRS tax examination that is unlikely to result in adjustments in the business's favor
• the business in question has acted as a guarantor of the financial obligations of its subsidiaries
• an insurance claim for the recovery of a business loss that the insurance company is likely to dispute

25.

When goods are given to a consignee by a consignor for the purpose of allowing the consignee to sell the items on a commission basis, with whom does the ownership of those items remain?

• the consignor
• both, as the goods are sold on commission
• neither, as the goods are sold on commission
• the consignee