On Their Most Recent Balance Sheet, a Company Reports Total

question 42

Multiple Choice

On their most recent balance sheet, a company reports total assets of $8 million, common shares of $4 million, and retained earnings of $2 million.The debt-to-equity ratio is:

• A)0.33
• B)1.00
• C)2.00
• D)3.00

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Definitions:

Subcutaneous Tissue

The layer of tissue directly under the skin, consisting of fat and connective tissues that insulate and protect the body.

Integumentary System

The organ system that protects the body from external damage, consisting of the skin and its appendages like hair, nails, and glands.

Dermal Papillae

Small, nipple-like extensions of the dermis into the epidermis, increasing the surface area for exchange of gases, nutrients, and waste.

Epidermis

The outermost layer of the skin that provides a waterproof barrier and creates our skin tone.