
1.
Introduction: The amount of total assets is always equal to the sum of total liabilities and shareholder’s equity of the company. Total assets include current and non-current assets while total liabilities include current liabilities and non-current liabilities.
The total amount of assets of A company for the current year.
2.
Introduction: Return on asset shows the efficiency of the managers to utilize the assets of the company to have good returns on it. It helps to understand the company’s position in the market.
The return on assets for the current year of company A.
3.
Introduction: Total expenses of the company includes the expenditures which are must for operations of the company to generate income. Thus, income and expenses are related to each other. Net income is calculated by subtracting the expenses from the revenues of the company.
The total expenses of the company A for the current year.
4.
Introduction: Return on asset shows the efficiency of the managers to utilise the assets of the company to have good returns on it. It helps to understand the company’s position in the market.
To compare: The return on asset of company A with the market average return which is 10%.

Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
- Provide question answer financial accountingarrow_forwardSondela Crafts is a small company that specialises in the manufacture of curios to customer specifications. The company recently opened a specialised unit that is dedicated to the manufacture of a curio piece popularly known as “Ilala”. The unit is staffed by manager and various sales personnel. The unit manager is remunerated on a fixed salary basis and the sales personnel receive a fixed salary plus commission. As part of a review of the first year of operations, the unit manager has provided you with the following information as part of an effort to assess the unit’s financial viability: Selling Price per unit R600 Variable manufacturing cost per unit R390 Facilities rental per annum R1 200 000 Salaries (excluding sales commissions) R4 000 000 The unit manager is unsure of how to deal with selling and administration expenses. She has extracted the following information from the…arrow_forwardGeneral accountingarrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning


