Hannah Has Liabilities Totaling $30,000 (Excluding Her Mortgage of $100,000)

question 117

Multiple Choice

Hannah has liabilities totaling $30,000 (excluding her mortgage of $100,000) . Her net worth is $45,000. What is her debt-to-equity ratio?

• A) .45
• B) .67
• C) .75
• D) 1.00
• E) 1.30

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Definitions:

Traceable Fixed Expense

A fixed cost that can be directly associated with a specific business segment or area, and which would disappear if the segment was eliminated.

Price Reduction

A decrease in the selling price of goods or services, often to increase demand or meet competitor pricing.

Traceable Fixed Expense

A fixed expense that can be directly linked to a specific department, product, or activity without any allocation.

Net Operating Income

The profit generated from a business's operations after subtracting operating expenses from operating revenues.