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

question 4

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:

Cash Receipts

The collection of money, including currency, checks, and electronic transfers, by a business.

Sales Budget

An estimate of future sales, often detailed in terms of volume and revenue, used for planning and controlling a business's operations.

Cash Collections

The process of gathering all cash received from sales, receivables, and other sources during a given period.

Direct Materials

Basic substances used explicitly in the manufacturing of certain products or services.