Paradis Has Total Assets of $360 000,current Assets of $35

question 29

Multiple Choice

Paradis has total assets of $360 000,current assets of $35 000,current liabilities of $22 000,and total liabilities of $195 000.His debt-to-asset ratio is

• A)1.59.
• B)0.63.
• C)0.54.
• D)1.85.

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Definitions:

Liabilities

The rights of creditors that represent debts of the business.

Period

Period refers to a length or portion of time, often defined in the context of financial reporting or cycles.

Current Liabilities

Obligations a company is required to pay within one year or an operating cycle, whichever is longer.

Due

Referring to an obligation or payment that is expected to be paid or fulfilled by a certain date.