Which of the Following Has the Best Debt-To-Asset Ratio

question 75

Multiple Choice

Which of the following has the best debt-to-asset ratio?

• A)John has total assets of $600 000 and total debt of $400000.
• B)Fred has total assets of $36 000 and total debt of $23000.
• C)Maria has a monthly gross income of $8000 and expenses of $6000.
• D)Cassandra has a gross monthly income of $2000 and expenses of $1200.

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Definitions:

Semiannually

Occurring twice a year or every six months, often used in the context of payments, interest accrual, or reporting periods.

Average Inventory

An accounting measure used to estimate the value or quantity of inventory over a period, typically calculated as the sum of the starting and ending inventory divided by two.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.