Karzon Ltd

question 86

Multiple Choice

Karzon Ltd., a car manufacturing company, calculated its debt ratio to be 2:5. Calculate the total debt for Karzon Ltd., from the following information: Cash in hand = $120,000
Cash at bank = $180,000
Bills receivable = $200,000
Bills payable = $180,000
Land and building = $250,000
Inventories = $50,000
Machinery = $100,000

• A) $360,000
• B) $240,000
• C) $280,000
• D) $300,000
• E) $270,000

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Definitions:

Divorce

The legal dissolution of a marriage by a court or other competent body.

Sever

To cut off or divide, often used in legal contexts to discuss separating parts of contracts or severing ties between entities.

Estate in Land

Refers to the degree, quantity, nature, and extent of interest a person has in real property.

Fee Simple

The most complete form of ownership of real estate, giving the holder full possession and control over the property.