The Debt-To-Equity Ratio Is Calculated by Dividing Total Stockholders' Equity

question 207

True/False

The debt-to-equity ratio is calculated by dividing total stockholders' equity by total liabilities.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed by the party to be charged, in order to be legally enforceable.

Real Property

Pertains to land and anything permanently attached to it, such as buildings, including the rights associated with ownership of land.

Uniform Commercial Code

A detailed collection of regulations for overseeing commercial activities in the USA, aimed at standardizing business statutes nationwide.

Sale of Goods

A commercial transaction in which a seller transfers or agrees to transfer goods to a buyer for a monetary consideration, under terms and conditions.