The Following Items Are Taken from the Financial Statements of the Freight

question 1

Multiple Choice

The following items are taken from the financial statements of the Freight Service for the year ending December 31 2016: $\begin{array}{lr}\text { Accounts payable } & 19,000 \\\text { Accounts receivable } & 13,000 \\\text { Accumulated depreciation - equipment } & 26,000 \\\text { Advertising expense } & 21,200 \\\text { Cash } & 15,000 \\\text { Owner's capital }(1 / 1 / 16) & 104,000 \\\text { Owner's drawings } & 11,000 \\\text { Depreciation expense } & 12,000\\\text { Insurance expense } & 3,800 \\\text { Note payable, due } 6 / 30 / 17 & 72,000 \\\text { Prepaid insurance (12-month policy) } & 7,200 \\\text { Rent expense } & 16,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 135,000 \\\text { Supplies } & 5,000 \\\text { Supplies expense } & 6,000 \\\text { Equipment } & 210,000\end{array}$ What is the company's net income for the year ending December 31 2016?

• A) $14000
• B) $33000
• C) $44000
• D) $135000

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Definitions:

Performance Evaluations

A systematic process by which an employee's job performance is assessed, typically annually, to determine the effectiveness and guide decisions on promotions, rewards, and development needs.

Administrative Purposes

Activities or tasks carried out to manage the operations of an organization, including record keeping, planning, and organizing.

Personnel Decisions

Actions relating to the management and direction of employees within an organization, including hiring, promotion, and termination.

Training Needs

The identification of gaps in workforce competencies that, when addressed through training, can improve individual and organizational performance.