Kim's Kar Kare Service Has Total Debt of $690, Total

question 4

Multiple Choice

Kim's Kar Kare Service has total debt of $690, total assets of $1,260, interest expense of $140, and sales of $400. Which of the following is the debt ratio for the business?

• A) 11.1 percent
• B) 31.7 percent
• C) 54.8 percent
• D) 58 percent

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Definitions:

Paid-In Capital

The total amount of money that shareholders have invested in a company by purchasing its stock, excluding retained earnings.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set at the time of its issue.

Universal Definition

A description or concept unanimously agreed upon and understood in the same way by all.

Contemporary Household

A modern family structure that may deviate from traditional norms, encompassing a wide variety of arrangements beyond the nuclear family.