Arcinet Limited Reported the Following Items on Their Balance Sheet

question 161

Multiple Choice

Arcinet Limited reported the following items on their Balance Sheet: $\begin{array}{|r|r|}\hline \text { Unearned Revenue } & \$ 85,000 \\\hline \text { Prepaid Rent } & 56,200 \\\hline \text { Mortgage liabilities } & 135,000 \\\hline \text { Long-term note payable } & 150,000 \\\hline \text { Bonds payable } & 195,000 \\\hline \text { Other Current Liabilities } & 23,000 \\\hline \text { Share capital } & 125,000 \\\hline \text { Retained earnings } & 157,500 \\\hline\end{array}$ The debt to equity ratio for Arcinet (rounded to two decimal places) is

• A)2.08
• B)1.78
• C)1.22
• D)1.98
• E)1.96

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Definitions:

Observation

Observation involves carefully watching, listening, and noting the characteristics or behavior of a subject or phenomenon without direct interaction or manipulation.

Systematic Tests

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Hypotheses

Proposed explanations for a phenomenon, made as a starting point for further investigation, that can be tested by experimentation or observation.

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and their environments.