is not a source v (b) Depreciation d) Decrease in long-term liability 16. Among the following, (a) Decrease in current assets (c) Decrease in long-term assets OE? 17. Which among the following is NOT a factor in Du Pont Expansion of R (a) Equity Multiplier (c) Current Ratio (b) Profit Margin (d) Asset Turnover 18. retained earnings are: (a) accumulated net incomes, less accumulated losses, less stockholders' dividends paid out or distributed since the business began operations (b) accumulated net incomes plus dividends earmed, since the business began (e) reduced by any deficits before being recorded on the balance sheet (d) represented by an equivalent amount of cash in the bank 19. A company's sales revenue for the year is $1,000,000 and all costs and expenses including depreciation, amortization, interest and tax are $950,000. Average total assets are $750,000. Average total liabilities are $500,000. Return on stockholders' equity is: (a) 10.0% (b) 20.0% (c) 5.0% (d) 6.7% 20. Financial leverage is: (a) The use of equity rather than debt to improve return on owners' equity (b) A method of decreasing the debt to equity ratio (e) The use of debt rather than equity to improve return on owners' equity (d) A safe method of obtaining long term debt financing in times of declining net income 21. A restaurant's average check in Year 1 is $20.00, in Year 2 is $21.00, and in Year 3 is $22.00. Using this as a basis, calculate the trend index numbers. The trend index numbers for the three years respectively, would be: (a) 120, 121, 122 (c) 100, 105, 110 (b) 100, 121, 122 (d) 100, 120, 121 2. Which of the following costs is primarily fixed? (a) Food cost (b) Insurance (d) Operating supplies ) Labor cost