A Firm Began the Current Fiscal Year with Total Assets

question 30

Multiple Choice

A firm began the current fiscal year with total assets of $8 million, common shares of $4 million and retained earnings of $2 million.At the end of the current year the firm reported net income of $1 million, all of which was retained by the firm.The debt-to-equity ratio for this reporting period is:

• A)0.17
• B)0.14
• C)0.25
• D)0.33

---

Definitions:

Nonsense Syllables

A set of letters that do not form known words, used in psychological experiments to study memory and learning.

Foreign Language Words

Words that originate from a language different from one's native or primary language.

Information-Processing Speed

The rate at which individuals can perceive, assimilate, and respond to information.

Social Clock

The culturally preferred timing of social events such as marriage, parenthood, and retirement.