A static budget should be used for how many of the following?

• Administrative salaries
• Factory manager's salary
• Rent on factory equipment
• Utilities for factory

a) 0

b) 1

c) 4

d) 2

e) 3

How many of the following would be considered a capital expenditure?

• The cost of replacing a toner cartridge in a printer
• The cost of painting a truck
• The cost of repairing an air conditioning unit
• The cost of replacing air filters in a car engine

a) 4

b) 3

c) 1

d) 2

e) 0

A higher return on assets ratio is preferred because it reflects a companys ability to generate

a) net income faster.

b) more current assets relative to its current liabilities.

c) more net income relative to its invested assets.

d) more net income relative to its total liabilities.

e) more net income relative to its interest expense.