Exam 1: Accounting and the Business Environment

McAlister Repair Service had net income for the year of $125,000. In addition, the balance sheet reports the following balances: Jan. 1, 2018 Dec. 31, 2018 Accounts Receivable \ 5,600 \ 14,200 Accounts Payable 12,000 9,500 Building 125,000 125,000 Cash 37,500 35,000 Office Furniture 25,000 50,000 Office Supplies 3,200 1,500 Notes Payable 60,000 75,000 Total Stockholders' Equity 124,300 141,200 Calculate the return on assets (ROA) for McAlister Repair Service for the year ending December 31, 2018.

A statement of cash flows always represents a period of time.

According to the ________, acquired assets should be recorded at the amount actually paid rather than at the estimated market value.