Orem Corporation's Current Liabilities Are $75,000, Its Long-Term Liabilities Are

question 223

Multiple Choice

Orem Corporation's current liabilities are $75,000, its long-term liabilities are $225,000, and its working capital is $100,000. If the corporation's debt-to-equity ratio is 0.30, total long-term assets must equal:

• A) $1,000,000
• B) $1,300,000
• C) $1,125,000
• D) $1,225,000

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Definitions:

Internal Locus

A psychological term indicating that individuals believe they have control over the events and outcomes in their lives.

External Locus

An external locus of control refers to the belief that external forces, rather than personal actions, have the major influence on one’s life events and outcomes.

Positive Social Ties

Relationships with others that provide support, comfort, and beneficial interactions, contributing to an individual's physical and mental health.

Biofeedback

An approach that trains people to boost their well-being by regulating involuntary bodily functions, such as heart rate and blood pressure.