Protan Ltd Has the Following Summary Balance Sheet at Year-End

question 48

Multiple Choice

Protan Ltd has the following summary balance sheet at year-end.
Current assets $ 700 000
Long-term assets 1 000 000
Current liabilities 100 000
Long-term liabilities 300 000
Share capital 600 000
Retained earnings 700 000
The debt ratio at year-end is:

• A) 76.5 %.
• B) 23.5 %.
• C) 40 %.
• D) 17.6%.

---

Definitions:

Dual Federalism

A concept of federalism where federal and state governments are seen as co-equal sovereigns, operating independently and with powers that are clearly delineated.

Layer Cake

Often used as a metaphor to describe a clear, well-defined separation of powers or responsibilities, especially in federal systems.

Marble Cake

Metaphorically used in federalism to describe a government system where state, local, and federal powers are intertwined and not clearly distinguished.

Devil's Food Cake

A moist, airy, rich chocolate cake that is one of the most popular American cake varieties.