P 8-13 Required Answer the following multiple-choice questions: Which of the following is not considered to be a nonrecurring itema 1. Discontinued operations 2. Extraordinary items 3. Cumulative effect of change in accounting principle 4. Interest expense 5. None of the above. a. b. Ideally, which of these ratios will indicate the highest return for an indi 1. Return on assets 2. Return on assets variation 3. Return on investments 4. Return on total equity 5. Return on common equity c. If a firm's gross profit has declined substantially, this could be attributed which of the following reasons? 1. The cost of buying inventory has increased more rapidly than selling 2. Selling prices have declined due to competition. 3. Selling prices have increased due to competition. 4. The mix of goods has changed to include more products with lower ma 5. Theft is occurring. d. Gross profit analysis could be of value for all but which of the following 1. Projections of profitability 2. Estimating administrative expenses 3. Inventory for interim statements 4. Estimating inventory for insurance claims 5. Replacing the physical taking of inventory on an annual basis e. Total asset turnover measures 1. Net income dollars generated by each dollar of sales. 2. The ability of the firm to generate sales through the use of the a