Devil IncHas Total Liabilities Equal to $3,500 and Total Assets Equal

question 88

Multiple Choice

Devil Inc.has total liabilities equal to $3,500 and total assets equal to $5,000.What is Devil's asset-to-equity ratio?

• A) 1.43
• B) 2.33
• C) 3.33
• D) none of the above

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Definitions:

Qualitative Characteristic

A feature used to describe or categorize non-quantitative aspects of items, events, or conditions, often used in accounting and finance to evaluate factors that are not numerically based.

Internal Rate

Often referring to the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets to further its long-term goals and operations.

Present Value

The value of a future amount of money in today's dollars, calculated by applying a discount rate to account for the time value of money.