Karma Corporation Has Total Assets of $190,000 and Total Liabilities

question 172

Multiple Choice

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

• A) 0.47
• B) 0.90
• C) 0.53
• D) 0.32

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Definitions:

Estate in Land

The degree, quantity, nature, and extent of interest a person has in real property, which can range from full ownership to temporary rights.

Lease Agreement

A contract outlining the terms under which one party agrees to rent property owned by another party.

Lessor

The party in a lease agreement that owns the leased property and grants its use to another party, known as the lessee, for a specified period.

Valuable Broach

A piece of jewelry, especially a large decorative pin or clasp, that is considered of high monetary or sentimental value.