A Company Reports Total Assets of $850,000 and Stockholders' Equity

question 92

Multiple Choice

A company reports total assets of $850,000 and stockholders' equity of $500,000. Calculate the debt ratio.

• A)39.75%
• B)41.18%
• C)58.23%
• D)40.00%

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Definitions:

Utility-Maximizing Rule

An economic principle stating that consumers allocate their income to purchase the combination of goods and services that maximizes their utility.

Consumption Mix

The combination of goods and services consumed by an individual or in an economy, reflecting preferences, income levels, and other factors.

Marginal Utilities

The increased happiness or advantage gained by a consumer from consuming an extra unit of a good or service.

Maximum Utility

The greatest level of satisfaction or benefit that a consumer can obtain from consuming goods and services.