CompUS Has Pledged $275,000 Worth of Its Assets

question 118

Multiple Choice

CompUS has pledged $275,000 worth of its assets. The total book value of its assets is$625,000. The firm's total liabilities are $750,000. The secured liabilities are $150,000. The pledged assets to secured liabilities is:

• A) 2.3.
• B) 2.7.
• C) 5.0.
• D) 1.8.
• E) 1.2.

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Definitions:

Progress Payments

Payments made on a contract in advance of the final delivery, typically based on the completion of certain stages or milestones within the project.

Critical Event

A significant occurrence or turning point that has the potential to affect the operation, stability, or outcome of a process, project, or situation.

Value Creation

The process through which businesses or organizations generate increased worth for shareholders or stakeholders, often through strategic decision-making and operations.

Cash Payments

Cash payments are transactions that involve the transfer of actual cash from one party to another, usually as payment for goods, services, or obligations.