A Widget Fails 12 Times in 600 Hours of Operation

question 58

Multiple Choice

A widget fails 12 times in 600 hours of operation.The failure rate of the widget is ______.

• A)0.02
• B)0.03
• C)0.01
• D)0.05

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Definitions:

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Equity Component

A part of a compound financial instrument that represents a right to equity shares of the issuer, separate from other elements such as a debt component.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all unrealized gains and losses.

Statement of Changes

Refers to a financial statement that outlines the changes in equity of a company over a specific period due to transactions with owners and other comprehensive income.