A Retailer with a Financial Leverage Ratio of 1 Has

question 75

Multiple Choice

A retailer with a financial leverage ratio of 1 has _____.

• A)no long-term debt
• B)debt equal to current assets
• C)debt equal to net worth
• D)debt equal to fixed assets

---

Definitions:

Trial Balance

A worksheet for accounting where the total balances of all ledgers are arranged into equal debit and credit columns.

Trial Balance

A report that lists all the balances of a company's general ledger accounts to verify that debits equal credits.

Common Stock

A type of equity security that represents ownership in a corporation, with holders having voting rights and potentially receiving dividends.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.