Current Assets Are $200,000, Long Term Assets Are $300,000, Current

question 18

Multiple Choice

Current assets are $200,000, long term assets are $300,000, current liabilities are $100,000, long-term liabilities are $200,000, paid-in capital is $150,000, and retained earnings total $50,000. What is the debt-to-total-assets ratio?

• A)0.4 or .4 to 1
• B)0.6 or .6 to 1
• C)0.2 or .2 to 1
• D)0.9 or .9 to 1

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Definitions:

Hedonic Relevance

The degree to which a situation or an object can produce pleasurable or unpleasurable sensations.

Kelly's Attribution Theory

A psychological theory proposed by George Kelly that focuses on how individuals interpret events and how this relates to their thinking and behavior.

Covariation Principle

A principle in social psychology that asserts that for someone to attribute an effect to a condition, they must observe that the effect covaries with the condition across time.

Dispositional Attribution

The tendency to attribute someone's behavior to their personality, character, or disposition rather than situational factors.