A Company Has Total Assets of $1,000, Current Liabilities of $130

question 41

Multiple Choice

A company has total assets of $1,000, current liabilities of $130, and total liabilities of $350.What is the long-term debt to asset ratio?

• A)19
• B)22
• C)36
• D)31

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Definitions:

Store Equipment

Fixed assets like shelves, cash registers, and display units used in the operations of a retail store.

Display Rack

A fixture in stores and exhibitions used to showcase products or materials to customers and visitors.

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for sale to customers in the ordinary course of business.

Debit Memorandum

A document issued by a buyer to a seller indicating a debit or adjustment to an account, typically related to goods returned or a pricing dispute.