The Following Financial Information Pertains to Harrison Bank -What Is the Bank's Equity Multiplier?
A)1

question 42

Multiple Choice

The following financial information pertains to Harrison Bank.
$\begin{array} { c r } \text { Net Profit Margin } & 12.5 \% \\\text { Net Income } & \$ 1000 \\\text { Total Assets } & \$ 62,500 \\\text { Total Equity } & \$ 6250\end{array}$
-What is the bank's equity multiplier?

• A)1.6 times
• B)10 times
• C)12.8 times
• D)16 times
• E)None of the options is correct

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Definitions:

Process Operation

The segment of a manufacturing or production process that involves specific tasks to convert raw materials into finished products.

Process Cost Summary

A report that outlines the production costs associated with each step of a manufacturing process, typically used in industries where products are mass-produced.

Work In Process Inventory

Items that are in the production process but have not yet been completed or transformed into finished goods.

Direct Labor Cost

The total cost of work performed by employees directly involved in the manufacturing process.