A company's return on assets should be greater than its return on equity. True or False? Give me answer

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A: Step 1: Define Gross ProfitThe profit after paying all the manufacturing costs related to the…

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A: Explanation of Original CostThe Original Cost of an asset is the total amount paid at the time of…

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A: Step 1: Calculate the Cost of Goods Available for Sale (COGAS)• COGAS = Beginning Inventory + Cost…

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A: Step 1: Define Overhead RateOverhead rate mean the predetermined rate of the overhead for the…

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A: Step 1: Given Value for Calculation Current Price of Stock of Microsoft = pm = $420.30Earning Per…

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A: To calculate the value of the ending inventory under absorption costing, we need to determine the…

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A: Step 1: Definition of Shareholders' EquityShareholders' Equity is the residual interest in the…

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A: For Plant X:Pre-determined Overhead Rate = Manufacturing Overhead/ Direct Labour hours…

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A: Dimensional complexity in account structures refers to the need to accommodate various business…

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A: Step 1: Define Absorption Costing Unit Product CostUnder absorption costing, the unit product cost…

Q: A company produces a single product. Last year, fixed manufacturing overhead was $30,000, variable…

A: Step 1: Key InformationSelling Price per Unit: $40Variable Production Costs: $48,000Fixed…

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A: Explanation of Credit Sales: Credit sales occur when a business allows customers to purchase goods…

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A: The Return on Assets (ROA) is calculated as: ROA = Net Income / Total Assets First, we need to…

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A: Approach to solving the question: To solve for the contribution margin we will do this Step 1:…

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A: Step 1: Define Variance Analysis A comparison of actual results with anticipated or budgeted results…

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A: Step 1: Definition of Materials Price Variance and Materials Usage VarianceMaterials Price Variance…

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A: Step 1: Define Operating Profit under Absorption CostingUnder absorption costing, operating profit…

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A: Explanation of Fixed Overhead: This represents the constant manufacturing costs that remain…

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A: To record the unrealized gain on trading investments, you need to adjust the valuation allowance…

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A: Explanation of Standard Rate: This represents the predetermined labor cost per hour that management…

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A: To calculate the predetermined overhead rate, you divide the total estimated overhead costs by the…

Q: Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The…

A: Step 1: Key Data ProvidedProduct Lines: Poinsettias and Fruit TreesSales:Poinsettias: $970,000Fruit…

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A: Explanation of Off-Market Swaps: These are derivative contracts where the terms are set at rates…

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A: To calculate the manufacturing margin under variable costing, follow these steps: Determine the…

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A: Step 1: Definition of Absorption CostingAbsorption Costing is a costing method in which all…

Q: A company's return on assets should be greater than its return on equity. True or False?

A: Key Points:1. Return on Assets (ROA):Measures how efficiently a company uses its total assets to…

Q: How does dimensional complexity affect account structures?

A: Explanation of Dimensional Complexity: This refers to the multiple layers and aspects of an…

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A: Step 1: Identify the cost basis and 2012 market valueStep 2: Calculate the 2013 market value…

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A: Step 1: Define Manufacturing Overhead CostManufacturing overhead cost is the cost that is incurred…

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A: Step 1: Define Variable CostingVariable costing includes only variable manufacturing costs (e.g.,…

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A: Data Given:Cost: $3,440,000 (not directly relevant here).Carrying Amount: $1,720,000.Expected Future…

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A: The evaluation of Asset Turnover and DuPont analysis determines that the firm's specific value is…

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A: Explanation of Net Income: Net income represents the total earnings of a company after deducting all…

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A: Step 1: Compute the Net Realizable Value (NRV)The formula for NRV is:NRV=Estimated Selling…

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A: Step 1: Definition of Direct Labor VarianceThe total direct labor variance measures the difference…

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A: To calculate Sarah's capital balance at the end of the year, we need to follow these steps: Initial…

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A: To calculate the inventory cost under variable costing, only the variable production costs (direct…

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A: Step 1: Define Gain or LossGain or loss on the sale of an asset is the difference between the amount…

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A: Step 1: Define Cost of Goods ManufacturedManufacturing companies calculate their cost of goods…

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A: Explanation of Executory Costs:Executory costs refer to expenses associated with a leased asset that…

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A: Step 1: Profit MarginProfit margin is a profitability ratio that evaluates how much profit is…

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A: Step 1: Define Payback PeriodThe payback period calculates the recovery period of the investment…

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A: To prepare the intangible assets section of the balance sheet for Summit Industries as of December…

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A: To calculate the equivalent units for conversion costs, we account for the units that are completed…

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A: Step 1: Definition of Maturity ValueThe maturity value of a note payable is the total amount to be…

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Q: On a particular date, Microsoft has a stock price of.... Please answer the accounting question

A: The question pertains to method of comparables. There are several equity valuation models, including…