If Current Liabilities Are $90,000,long-Term Liabilities Are $270,000,and Total Assets

question 88

Multiple Choice

If current liabilities are $90,000,long-term liabilities are $270,000,and total assets are $600,000,what is the percentage of total liabilities to total assets?

• A) 15 percent
• B) 45 percent
• C) 60 percent
• D) 100 percent

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Definitions:

Percentage Completion

A measure used in accounting and project management to indicate the progress of projects or production, based on the completion percentage of the total work.

Process Costing System

A method used to assign production costs to units of product when nearly identical products are mass produced.

Overhead Allocated

The portion of overhead costs assigned to a specific product, department, or project.

Work in Process Account

An account that tracks the costs associated with unfinished goods that are still in the production process.