When Calculating the Debt-To-Equity Ratio, the Following Is NOT Included

question 46

Multiple Choice

When calculating the debt-to-equity ratio, the following is NOT included:

• A) Credit card balances.
• B) Net worth
• C) Auto loan balances.
• D) Mortgage balance.
• E) Installment debt

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Definitions:

Amortization Expense

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Statement Of Retained Earnings

This is a financial statement that outlines the changes in retained earnings for a specific period, factoring in net income and dividends.

Income Statement

A financial statement that shows a company's revenues and expenses over a particular period, culminating in its net income or loss.

Cumulative

Referring to something that increases or accumulates over time, such as cumulative voting rights or cumulative dividends.