Please Refer to the Following Information and Calculate the Debt

question 15

Multiple Choice

Please refer to the following information and calculate the debt ratio.(Round to two decimals.) $\begin{array}{|l|r|r|} \hline&{\text { Debit }} & \text { Credit } \\\hline \text { Cash } & \$ 6,000 \\\hline \text { Accounts receivable } & 2,000 \\\hline \text { Prepaid insurance } & 800 \\\hline \text { Land } & 40,000 \\\hline \text { Building } & 50,000 \\\hline \text { Accumulated depreciation } & & \$ 32,000 \\\hline \text { Accounts payable } & & 9,400 \\\hline \text { Wages payable } & & 4,000 \\\hline \text { Notes payable - short term } & & 3,200\\\hline\end{array}$

• A) 0.25
• B) 1.89
• C) 0.53
• D) 4.02

---

Definitions:

Antiembolism Stockings

Specialized stockings designed to apply pressure to the lower legs, helping to improve blood flow and prevent the formation of blood clots.

Teaching Principle

A foundational guideline or approach used to facilitate learning and understanding in educational settings.

Cognitive Domain

Part of learning and intellect that involves mental skills and knowledge acquisition, encompassing processes such as memory, problem-solving, and decision-making.

Kinesthetic

Relating to the perception of body movements and awareness of the position of the body and its parts.