Peartree Company Provides the Following Data: What Is Peartree's

question 4

Multiple Choice

Peartree Company provides the following data: What is Peartree's debt-to-equity ratio at year-end 2014?

• A)0.60
• B)0.92
• C)1.33
• D)0.67

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Definitions:

Amortization

The gradual reduction of a debt or the cost of an intangible asset over a specific period of time, typically through regular payments.

Bond Discount

The amount by which the market price of a bond is lower than its principal amount or face value.

Indirect Method

A method used in cash flow statement preparation that adjusts net income for items that affected reported net income but didn't affect cash.

Operating Activities

Activities directly related to the production, sale, and delivery of a company's goods or services, reflecting its core business operations.