ABC Company Has Total Assets of $360,000 and Total Liabilities

question 148

Multiple Choice

ABC Company has total assets of $360,000 and total liabilities of $200,000. The company collects an account receivable of $20,000. After this transaction, the company's debt ratio will be:

• A) 0.56.
• B) 1.56.
• C) 1.80.
• D) 1.90.

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