Which of the following is the correct formula for calculating rate of return on total​ assets?   A. ​(Net income minus− Interest​ expense) / Average total asset   B. Total equity​ / Total assets   C. ​(Net income​ + Interest​ expense) / Average total assets   D. ​(Net income minus− Interest​ expense) / Total assets

Lugi Ka Na Company has been forced into bankruptcy as of April 30 because of its inability to pay its debts. The statement of financial position on that date shows: ASSETS LIABILITIES & EQUITY Cash Accounts Receivable Note Receivable Inventory Prepaid Expenses Land and Building Equipment, net P5,400 78,700 37,000 175,700 1,900 122,500 97,600 Accounts Payable Notes Payable – PNB Notes Payable - suppliers Accruedwages Accruedtaxes P105,000 30,000 102,500 3,700 9,300 180,000 150,000 (61,700) P518,800 Mortgage Bonds Payable Common stock-P100 par Retained Earnings Total Liabilities & Equity Total Assets P518,800 Additional information: a. Accounts receivable of P32,220 and notes receivable of P25,000 are expected to be collectible. The good notes are pledged to PhilippineNational Bank. b. Inventories are expectedto bring in P90,200when soldunder bankruptcyconditions. Landand buildingshave an appraised value of P190,000. They serveas security on the bonds. d. The currentvalue of the…

True or false Ratio between current assets and liabilities is called ratio.

Accrued revenues would appear on the balance sheet as A. assets B. liabilities C. capital D. prepaid expensses