A Firm Has Total Assets of $2,000,000

question 114

Multiple Choice

A firm has total assets of $2,000,000.It has $900,000 in long-term debt.The shareholders' equity is $900,000.What is the total debt to asset ratio?

• A) 45%
• B) 40%
• C) 55%
• D) 100%

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Definitions:

Mental Age

An estimate of an individual's level of cognitive development compared to others, based on performance in intelligence tests.

Intelligence Quotient

A standardized score derived from one of several different standardized tests designed to assess human intelligence.

Culture-Fair

Refers to tests or assessments designed to be free of cultural bias, aiming to measure intelligence or other attributes equitably across different cultures.

Psychological Test

A standardized measure of a sample of a person's behavior that is used to assess and understand individual differences or mental health status.