Zero Corp's Total Common Equity at the End of Last

question 13

Multiple Choice

Zero Corp's total common equity at the end of last year was $405,000 and its net income was $70,000.What was its ROE?

• A)14.82%
• B)15.60%
• C)16.42%
• D)17.28%
• E)18.15%

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, thus preparing the books for the next period.

Reversing Entry

An accounting entry made at the beginning of a period to reverse the effects of certain adjustments made in the previous period.

Salary Expense

The cost incurred by a business to pay its employees.

Financial Statement

An organized log of economic actions and the financial situation of a firm, an individual, or any other unit.