A Corporation Reports the Following Year-End Balance Sheet Data A) 058
B) 1

question 173

Multiple Choice

A corporation reports the following year-end balance sheet data. The company's equity ratio equals: $\begin{array}{lrrr}\text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 5,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\text { Equipment } & 145,000 & \text { Retained earnings } & 90,000 \\\text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000 \\\end{array}$

• A) 0.58
• B) 1.27
• C) 2.07
• D) 0.37
• E) 0.63

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Definitions:

Digital Cash

Money stored electronically and used in place of physical currency.

Electronic Funds

Money that is moved electronically from one bank account to another.

Microchips

Small, integrated circuits embedded in various devices to provide control, processing, or memory capabilities.

Electronic Fund Transfer Act

A law that protects consumers when they transfer funds electronically, including ATMs, debit cards, and direct deposits.