Karen Price Has Determined That Her Net Worth Is $30,000,excluding

question 122

Multiple Choice

Karen Price has determined that her net worth is $30,000,excluding her home.She owes $80,000 on her mortgage and $15,000 on a car loan.What is Karen's debt-to-equity ratio?

• A)3.2
• B)2.0
• C)0.5
• D)2.7
• E)0.3

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Definitions:

Accounting Standards

Rules and guidelines that companies must follow when reporting financial data.

Corporate Structure

Describes the organization and hierarchy of a company, including its departments, divisions, and roles, to facilitate management and operational efficiency.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as if they were a single economic entity.

Common Law

A legal system based on customs and court rulings rather than written laws.