Which of the Following Misstatements Would Cause the Debt-To-Assets Ratio

question 60

Multiple Choice

Which of the following misstatements would cause the debt-to-assets ratio to be overstated?

• A)Recording costs as assets that should have been expensed.
• B)Failing to adjust for depreciation in the current period.
• C)Failing to accrue income taxes of the current period.
• D)Failing to accrue interest earned of the current period.

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Definitions:

Formal Structures

The officially designated channels of communication and division of responsibilities within an organization.

Policies

Established guidelines, rules, or principles that dictate how an organization’s affairs should be conducted, directing both strategy and operations.

Tasks

Refers to specific duties or pieces of work assigned or required as part of a job or role.

Setting Standards

The process of establishing criteria or benchmarks that define expected levels of performance, quality, or conduct.