Use the information below for questions 21-2225. If bonds are issued at a discount, it means that theb. market interest rate is higher than the contractual interestd. bondholder will receive effectively less interest than thec. market interest rate is lower than the contractual interest rate.net income of $300,000.total assets of $1,500,000.21. Ritter's return on assets ratio isa.24%b.37.5%30%c.d.20%22 Ritter's asset turnover ratio isa. 2 times.b. 1.6 times.c. 1.3 times.d. .96 times.23. Research and development costsa. are classified as intangible assets.b. must be expensed when incurred under generally acceptedaccounting principles.c. should be included in the cost of the patent they relate to.d. are capitalized and then amortized over a period not to exceed 40years.24. If bonds are issued at a premium, the contractual interest rate isa. higher than the market rate of interest.b. lower than the market rate of interest.c. too low to attract investors.d. adjusted to a higher rate of interest.a. financial strength of the issuer is suspect.rate,contractual rate of interest.

Return on Total Assets: The return on total assets ratio reveals how successfully a company's…

Answered: Use the information below for questions…

Use the information below for questions 21-22 net income of $300,000. total assets of $1,500,000. 21. Ritter's return on assets ratio is a. 24% 37.5% 30% 20% b. C. d. 22 Ritter

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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