Dewey Enterprises' Capital Structure Consists of $2 Million in Debt and $1 Million

question 131

Multiple Choice

Dewey Enterprises' capital structure consists of $2 million in debt and $1 million in equity.What is the firm's debt-to-equity ratio?

• A).5
• B)1
• C)2
• D)1.5

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Definitions:

Recurring Nonoperating

A financial term referring to regular income or expenses that arise from activities not related to a company's core operations.

AICPA

Stands for the American Institute of Certified Public Accountants, a professional organization that sets ethical and auditing standards for the accounting profession in the United States.

Comprehensive Income

The total change in equity for a reporting period, excluding any transactions from owners (such as dividends).

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.