A Company with Liabilities of $2,816,000 and Equity of $826,000

question 127

True/False

A company with liabilities of $2,816,000 and equity of $826,000 has a debt to equity ratio equal to 29.33%

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Definitions:

Recession

A period of decline in economic activity lasting more than a few months, as reflected by falling output, employment, income, and other aggregate measures.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Decrease in Supply

A reduction in the availability of a particular good or service in the market.

Downward-Sloping Demand

A fundamental economic principle stating that, ceteris paribus, the quantity demanded of a good falls as the price of the good rises, illustrated by a downward-sloping demand curve.