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

question 115

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:

Activity Level

In management accounting, this refers to the amount of production or the volume of services to be provided. It's often used in budgeting and to measure performance.

Flexible Budget Performance Report

A report that compares the actual performance against a budget that adjusts based on the level of activity.

Work in Process

Refers to partially finished goods in manufacturing, representing costs tied up in production but not yet completed.

Materials Variances

Differences between the actual costs of materials used in production and the standard or expected costs.