The Debt to Total Assets Ratio Is Computed by Dividing

question 133

Multiple Choice

The debt to total assets ratio is computed by dividing:

• A) total assets by long-term liabilities.
• B) total assets by total debt.
• C) total debt by total assets.
• D) long-term liabilities by total assets.

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Definitions:

Express and Implied Warranty

Guarantees that a seller makes about the condition, functionality, or performance of goods or services; express warranty being explicitly stated and implied warranty being presumed by law.

Time Limitation

A statutory period within which a lawsuit must be filed or a specific legal action must be taken; failing to act within this period can result in losing the right to claim.

Restatement (Third)

A collection of volumes intended to inform the judiciary, lawyers, and others about general principles of common law in various areas.

Section 402A

A section of the Restatement (Second) of Torts relating to the liability of sellers for harm caused by defective products.