Alpha Company Provided the Following Balance Sheet for Year 2

question 164

Multiple Choice

Alpha Company provided the following balance sheet for Year 2: What is the company's plant assets to long-term liabilities ratio?

• A)2.33
• B)4.21
• C)1.83
• D)None of these answers choices are correct.

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Definitions:

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash working capital and non-operating items to determine cash flow from operating activities.

Operating Activities

Tasks and transactions related to the core business functions of a company, such as selling products and providing services, integral to generating revenue.

Direct Method

A costing method that directly allocates service department costs to producing departments without any intermediate allocation steps.

Operating Activities

Refers to the primary revenue-generating activities of a business, typically including sales, service delivery, and associated costs.