The Balance Sheets at the End of Each of the First

question 14

Multiple Choice

The balance sheets at the end of each of the first two years of operations indicate the following: If net income is $115,000 and interest expense is $30,000 for 2012, what is the rate earned on stockholders' equity for 2012 (round percent to one decimal point) ?

• A) 10.6%
• B) 11.1%
• C) 12.4%
• D) 14.0%

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Definitions:

Essay Method

A trait approach to performance rating that requires the rater to compose a statement describing employee behaviour.

Critical Incidents Method

A performance appraisal method focusing on the most significant actions of an employee, either positively or negatively impacting their job effectiveness.

Graphic Rating Scale

A method used in performance evaluations that involves marking an employee's level of performance on a chart with predefined categories.

Essay Method

A performance appraisal technique where evaluators write a narrative description of an employee's strengths, weaknesses, and potential.