Jewell Company Has Current Assets of $56,000; Long-Term Assets of $135,000;

question 89

Multiple Choice

Jewell Company has current assets of $56,000; long-term assets of $135,000; current liabilities of $44,000; and long-term liabilities of $90,000. Jewell Company's debt ratio is:

• A) 127.3%.
• B) 78.6%.
• C) 239.3%.
• D) 70.2%.
• E) 20.7%.

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Definitions:

Total Cost Method

An accounting method used for handling inventory, where the cost of goods sold is determined by adding purchase costs less the ending inventory.

Total Cost Method

An accounting approach where all costs of production, including variable and fixed, are used to value inventory and determine cost of goods sold.

Government Agencies

Public sector organizations established at federal, state, or local levels to administer specific functions and services on behalf of the government.

Desired Profit

The targeted amount of profit a company aims to achieve within a specific period, often used in budgeting and planning.