The Balance Sheets at the End of Each of the First

question 85

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 total assets for 2012 (round percent to one decimal point) ?

• A)9.3%
• B)10.1%
• C)8.0%
• D)7.4%

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Definitions:

Commander-In-Chief

The title held by the president of a country or the highest-ranking official of the armed forces, denoting supreme authority over the military organizations.

Continental Army

The Continental Army was the unified command structure of the thirteen colonies fighting Great Britain during the American Revolutionary War, established by the Second Continental Congress in 1775.

Financial Aid

Monetary assistance provided to individuals, particularly students, to help cover the costs of education, typically in the form of loans, grants, scholarships, or work-study programs.

Loyalist

A person who remained loyal to the British Crown during the American Revolutionary War, often facing social ostracism or fleeing to British territories as a result.