At the Beginning of the Current Year,Snell Co

question 3

Multiple Choice

At the beginning of the current year,Snell Co.total assets were $248,000 and its total liabilities were $174,200.During the year,the company reported total revenues of $93,000,total expenses of $76,000 and dividends of $5,000.There were no other changes in equity during the year and total assets at the end of the year were $260,000.The company's debt ratio at the end of the current year is:

• A)70%.
• B)67%.
• C)32%.
• D)48%.
• E)142%.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the parties involved in order to be enforceable.

Writing

The activity or skill of marking coherent words on paper and composing text.

Corporate Liability

Legal accountability or responsibility of a corporation for its actions or omissions, which can include financial obligations, damages, and penalties.

Dock Damage

Damage incurred to a dock or a vessel moored at a dock, usually due to accidents or natural events.