Which of the Following Misstatements Would Cause the Debt-To-Assets Ratio

question 216

Multiple Choice

Which of the following misstatements would cause the debt-to-assets ratio to be overstated?

• A)Capitalizing costs that should have been expensed as assets.
• B)Failing to adjust for depreciation in the current period.
• C)Failing to accrue income taxes of the current period.
• D)Failing to accrue interest earned of the current period.

---

Definitions:

E-Books

Digital versions of printed books, designed to be read on computers, e-readers, tablets, or smartphones, offering convenient access and storage.

Perfect Substitutes

Goods that can be used in place of one another with no loss of satisfaction by consumers.

Optimal Consumption Bundle

The blend of items and services that enhances a buyer's fulfillment to the fullest within their spending ability.

Consumption Bundle

A combination of goods and services that a consumer chooses to consume within a given time period.