The Balance Sheets at the End of Each of the First

question 51

Multiple Choice

The balance sheets at the end of each of the first two years of operations indicate the following:

-If net income is $150,000 and interest expense is $20,000 for Year 2,what is the rate earned on total assets for the year?

• A)10.4%
• B)11.9%
• C)10.5%
• D)8.4%

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Definitions:

Tape Measure

A flexible ruler used to measure distance, typically made from a ribbon of cloth, plastic, or metal.

River Erosion

The removal of soil and rock by the flowing water of a river, which can lead to changes in river shape and course.

Wet Pavement

A road surface condition that is wet, often reducing tire traction, increasing stopping distances, and affecting vehicle handling.