At the End of the Current Year,Leer Company Reported Total

question 72

Multiple Choice

At the end of the current year,Leer Company reported total liabilities of $300,000 and total equity of $100,000.The company's debt ratio on the last year-end was:

• A)300%.
• B)33.3%.
• C)75.0%.
• D)66.67%.
• E)$400,000.

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Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe that a representative has authority to act.

Bound

To be legally or morally obligated; often referring to the commitments made in a contract or agreement.

Purchased

Purchased refers to the acquisition of goods or services in exchange for money or other consideration.

Ratifying Contract

The act of formally approving an agreement to make it valid and binding, often after the fact.