Ratio of Liabilities to Total Assets Is Computed By

question 16

Multiple Choice

Ratio of liabilities to total assets is computed by:

• A)dividing total liabilities by total assets.
• B)dividing total current liabilities by total current assets.
• C)dividing total current liabilities by total quick assets.
• D)dividing total liabilities by total quick assets.

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Definitions:

Private Cost

The costs directly incurred by those who are producing or consuming goods or services.

Marginal Social Benefit

The additional gain to society as a whole from an extra unit of production.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Marginal Social Benefits

The extra advantage to the entire community from using an additional unit of a product or service.