The Balance Sheets at the End of Each of the First

question 38

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:

Insulin

A hormone produced by the pancreas that regulates the level of glucose in the blood.

Deoxyribonucleic Acid

A molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Endocrine Glands

Glands of the endocrine system that release hormones directly into the bloodstream, regulating various bodily functions including metabolism, growth, and mood.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain, forming the central nervous system.