A Company Reports Total Assets of $900,000 and Shareholders' Equity

question 80

Multiple Choice

A company reports total assets of $900,000 and shareholders' equity of $600,000.Calculate the debt ratio.

• A)33.33%
• B)50%
• C)66.67%
• D)40%

---

Definitions:

Costs Of Production

The total expenses incurred in the manufacture of a product, including direct materials, direct labor, and overhead costs.

Competitive Market

A market structure characterized by numerous buyers and sellers, where no single participant has significant market power, leading to products being sold at their market equilibrium prices.

Profit-Maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit under given market conditions.

Level Of Production

The total quantity of goods or services produced by a company or an economy during a specific period.