A Company's Balance Sheet Showed the Following Amounts for Liabilities

question 76

Multiple Choice

A company's balance sheet showed the following amounts for liabilities and stockholders' equity accounts: Current Liabilities, $50,000; Bonds Payable, $600,000; Capital Lease Obligations, $120,000; and Deferred Income Tax Liability, $20,000. Total stockholders' equity was $520,000. What is the debt-to-equity ratio?

• A)0.66
• B)0.70
• C)1.42
• D)1.52

---

Definitions:

Anxiety

An emotion of concern, anxiety, or discomfort, often regarding a forthcoming event or an outcome that is not guaranteed.

Coping

The process of managing external and internal demands that are perceived as taxing or exceeding the resources of the person.

Experience

The knowledge or skill acquired through involvement in or exposure to events, activities, or through specific training over a period of time.

Reinforcement

In the context of behavior, it refers to the process of encouraging or establishing a pattern of behavior by offering rewards or consequences.