The Liabilities of a Company at the End of the Year

question 23

Multiple Choice

The liabilities of a company at the end of the year are $500,000 and the total stockholders' equity at the end of the year is $1,500,000.The debt to stockholders' equity ratio is:

• A)0.50 to 1.
• B)0.33 to 1.
• C)0.67 to 1.
• D)3.00 to 1.

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Definitions:

Dollars

The basic monetary unit used in the United States, symbolized as $, representing the currency.

Contribution Format

A type of income statement presentation that separates fixed costs from variable costs, helping to understand the profitability of a company.

Income Statement

A financial statement that summarizes a company's revenues, expenses, and profits or losses over a specific period.

Contribution Format

An income statement format that separates fixed and variable costs to illustrate their impact on net income.