At the Beginning of the Current Year, Taunton Company's Total

question 121

Multiple Choice

At the beginning of the current year, Taunton Company's total assets were $248,000 and its total liabilities were $175,000. During the year, the company reported total revenues of $93,000, total expenses of $76,000 and owner withdrawals of $5,000. There were no other changes in owner's capital during the year and total assets at the end of the year were $260,000. Taunton Company's debt ratio at the end of the current year is:

• A) 70.6%.
• B) 67.3%.
• C) 32.7%.
• D) 48.6%.
• E) Cannot be determined from the information provided.

---

Definitions:

Behavior Modification

A therapeutic approach aimed at changing undesirable behaviors through the use of learning techniques, such as reinforcement or punishment.

E-therapy

The provision of mental health services and support over the internet.

Licensing

The legal process or requirement to obtain permission to engage in certain professions, activities, or use of intellectual property.

Psychosurgery

A type of brain surgery, the purpose of which is to treat or alleviate severe mental illness and behavioral disorders.