Frank Crawford Corporation's Balance Sheet Showed the Following Amounts: Current

question 126

Multiple Choice

Frank Crawford Corporation's balance sheet showed the following amounts: Current Liabilities,$15,000;Bonds Payable,$8,000;Lease Obligations,$9,000;and Notes Payable,$5,600.Total stockholders' equity was $17,000.The debt-to-equity ratio is

• A)0.88.
• B)1.18.
• C)0.71.
• D)2.21.

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Definitions:

Net Loss

The amount by which a company's expenses exceed its revenues, resulting in a negative profit.

Adjustment Columns

In accounting, adjustment columns in a worksheet are used to record adjustments for accrued, deferred, and estimated items before preparing final financial statements.

Income Statement Columns

Columns in an income statement that categorize financial information such as revenues, expenses, and net income to convey a company's financial performance over a specific period.

Balance Sheet Columns

Columns in a balance sheet that categorize and display assets, liabilities, and equity balances at a specific point in time.