The peach pit a restaurant has net income of 25000

15)
The Peach Pit, a restaurant, has Net Income of $25,000, Sales of $55,000, Assets of
$115,000, and no debt . What is their ROE?
21.7%
correct
4.29%
2.17%
42.9%
16) Which of the following options is an example of an explicit transaction?

17) A company provided the following information on its financial statements for
2013:
Dec. 31, 2012 Dec. 31, 2013
Accounts Receivable $150,000 $350,000
2012 2013
Sales Revenue $620,000 $840,000
Net Credit Sales $430,000 $720,000
Cost of Goods Sold $280,000 $360,000
What is the company's accounts receivable turnover ratio for 2013?
18)
Which transaction is presented in the above journal entry?
Payment of rent in advance
Expense recognized for prepaid rent
correct

Rent paid in instalments
Accrual for rent outstanding
19) Which of the following options is an example of revenue?
20) AQG Industries purchases $20,000 of product on credit from RSI Manufacturing.
AQG records the purchase as an increase in inventory and an increase in
accounts payable. AQG feels that they will be able to realize the value from the
inventory and settle the obligation to RSI in the weeks to come.
This scenario best demonstrates which of the following:
21) Company B sold a service contract that covers a two-year period for $10,000.
The service period commenced on July 1, Year 1. Service revenue is recognized

evenly throughout the contract period. What amount should Company B report as
deferred revenue from this service contract on its balance sheet on December
31, Year 1?
22) Suppose for the year 2015, Speedy Chef, a fast food restaurant, had a Gross Profit of
$1,281,648. Speedy Chef had the following expenses:
 Cost of Goods Sold $1,251,167
 Selling Expense $70,578
 Rent Expense $156,941
 Utilities Expense $73,994
 Insurance Expense $35,148
 Wages $505,245
 General & Administrative $24,358
 Miscellaneous $32,968
 Interest Expense $4,059
 Income Tax Expense $60,596
What would Speedy Chef's Income Before Taxes be for 2015?
$347,876
$378,357
correct
$317,357
$287,280