The Liabilities of a Company at the End of the Year

question 26

Multiple Choice

The liabilities of a company at the end of the year are $530,000 and the total stockholders' equity at the end of the year is $1,080,000. The debt to stockholders' equity ratio is: (Round your answer two decimal places.)

• A) 0.49 to 1.
• B) 0.33 to 1.
• C) 0.67 to 1.
• D) 3.04 to 1.

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Definitions:

Crisis

A critical or difficult situation that requires immediate attention and action to manage and overcome potential damage.

Chaos

A state of extreme confusion and disorder, often characterized by a lack of predictable order or planning.

Disaster

A sudden event, such as a natural catastrophe or man-made crisis, that causes great damage or loss.

Connections

Relationships or links between people, objects, or concepts that facilitate communication, interaction, or movement.