A Company Reports the Following Information on Its Year-End Financial

question 14

Multiple Choice

A company reports the following information on its year-end financial statements:
$$\begin{array} { l l } \text { Cument assets } & \$ 300 \\\text { Non-current assets } & 700 \\\text { Current liabilities } & 150 \\\text { Non-current liabilities } & 250\end{array}$$
Shareholders' equity 600
What is the debt-to-equity ratio?

• A) 50.0%
• B) 66.7%
• C) 40.0%
• D) 33.3%

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Definitions:

Fixed Contract Price

A predetermined and agreed-upon amount that will be paid for the delivery of goods or services under a contract, regardless of changes in costs or expenses.

Labour Efficiency Variance

Labour efficiency variance is the difference between the actual hours of labor consumed to produce a good or service and the standard hours expected, measured to assess productivity performance.

Direct Labour Standard

The benchmark or norm for the amount of labor time that is considered necessary to produce a unit of product under standard operating conditions.

Machine Breakdown

A failure or malfunction of machinery which leads to production halting and potential delays in operations.