The Debt-Equity Ratio Is Measured as Total

question 39

Multiple Choice

The debt-equity ratio is measured as total:

• A)debt plus total equity.
• B)debt minus total assets, divided by total equity.
• C)debt divided by total equity.
• D)equity minus total debt.
• E)equity divided by total debt.

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Definitions:

Manufacturing Costs

The total costs involved in making products which can include direct materials, direct labor, and manufacturing overhead.

Direct Material

These are the raw materials and components that are consumed directly in the manufacture of a product.

Variable Overhead

Costs that vary in total in direct proportion to changes in activity level or volume, such as utility costs or raw materials that fluctuate with production levels.

Factory Depreciation

The decrease in value of manufacturing equipment and facilities over time due to wear and tear or obsolescence.