If Long-Term Liabilities Are $75,000 and Total Assets Are $525,000

question 92

Multiple Choice

If long-term liabilities are $75,000 and total assets are $525,000, what percentage of total assets are long-term liabilities?

• A) 7 percent
• B) 16.7 percent
• C) 12.5 percent
• D) 14.3 percent

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company, reported in the cash flow statement.

Net Income

The net profit of a company following the deduction of all expenses and tax amounts from its total income.

Bonds Payable

Long-term debt securities issued by corporations or governments to raise capital, with an obligation to pay back the principal along with interest.

Operating Activities

Transactions and events related to the principal revenue-producing activities of an entity, influencing the net cash flow from operating activities.