The Following Contains Information from the Records of the Wellborn

question 67

Multiple Choice

The following contains information from the records of the Wellborn Engineers and Architects.
Wellborn Engineers and Architects
Selected financial information
31 December 2017
$$\begin{array} { | l | l | } \hline \text { Current assets } & \$ 77000 \\\hline \text { Current liabilities } & 47000 \\\hline \text { Non-current assets } & 9 8000 \\\hline \text { Non-current liabilities } & 63000 \\\hline \text { Total revenues } & 53000 \\\hline \text { Total expenses } & 33000 \\\hline\end{array}$$
What is the debt ratio?

• A) 3.84
• B) 1.63
• C) 0.63
• D) 1.67

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Definitions:

Suspension of Operations

The temporary halt of business activities or operations, which can be due to a variety of reasons, including economic downturns or emergencies.

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and labor.

Predetermined Overhead Rate

A calculated rate used to allocate overhead costs to products or services, often based on a specific activity such as labor hours or machine hours.

Special Order

An order for products or services that is outside the company's normal scope of work, often requiring a custom quotation or pricing.