If Simone Enterprises Has a Debt Ratio of 40%,it Means

question 66

Multiple Choice

If Simone Enterprises has a debt ratio of 40%,it means that for every $1 in _____,the firm has 40 cents in _____.

• A)owners' equity; liabilities
• B)assets; liabilities
• C)owners' equity; assets
• D)assets; owners' equity

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Definitions:

Inventory Control

A management system that oversees the ordering, storage, and use of components that a company will use in the production of the items it will sell as well as the finished products the company will sell.

Theft

An act of stealing; specifically, the illegal taking and removing of personal property with intent to deprive the rightful owner of it.

FIFO

"First In, First Out," an inventory valuation method where the first items purchased or produced are the first ones sold, impacting the value of remaining inventory.

Gross Profit

The financial measure obtained by subtracting the cost of goods sold from total sales revenue.