Find the Debt-To-Value Ratio for a Firm with a Debt-To-Equity

question 71

Multiple Choice

Find the debt-to-value ratio for a firm with a debt-to-equity ratio of 1/2.

• A)1/3
• B)1/2
• C)3/5
• D)2/3

Understand how to adjust the investment account balance for changes in ownership percentage, including acquisition costs, fair value adjustments, and amortization of excess cost over book value.

Understand the accounting for sales of investment in shares under the equity method, including gain/loss calculation and adjustments to the investment account.

Comprehend how a company's share of cumulative losses affects accounting for its investment under the equity method.

Understand and apply the equity method for accounting investments.

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Definitions:

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A device created or adapted for the purpose of making musical sounds.