If the Ratio of Total Liabilities to Total Assets Is

question 49

Multiple Choice

If the ratio of total liabilities to total assets is 0.5,long-term liabilities are $3,000,and equity is $5,000,then::

• A) you know that current liabilities must be $ 2,000.
• B) you know that current assets must be $400.
• C) you know that retained earnings must be $800.
• D) you know that preferred stock must be $400.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with a position in a hierarchy.

Me

Refers to oneself; used by a speaker to refer to themselves as the object of a verb or preposition.

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