The Following Are the Income Statements for Ace and Diamond

question 7

Multiple Choice

The following are the income statements for Ace and Diamond Companies. What are the net income percentages for the above companies?

• A) 6.09%; 4.25%
• B) 1.83%; 1.70%
• C) 16.4%; 23.6%
• D) 30%; 40%

---

Definitions:

Industrial-Development Bond

A government-issued bond to support the development of industrial projects, often tax-exempt for the buyer.

Revenue Bond

A type of municipal bond supported by the revenue from a specific project or source, rather than general tax revenues.

General-Obligation Bond

A type of municipal bond that is secured by the full faith and credit of the issuing government, including its taxing power to repay the bondholders.

Russell 2000

A gauge that tracks the performance of around 2000 of the smallest American firms listed in the Russell 3000 Index.