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4 years ago

All of the following statements accurately describe the debt ratio except. Multiple Choice

Business

2 answers:

KonstantinChe [14]4 years ago

8 0

Answer:

The correct answer is letter "A": The ratio is computed by dividing total equity by total liabilities.

Explanation:

The Debt Ratio compares the total debt of a corporation by its total assets, to tell us how highly the company is leveraged. In other words, how much of its assets are being financed by debt. The debt component of the ratio is composed of both traditional debt and operating liabilities.

Scorpion4ik [409]4 years ago

4 0

Answer:

a. The ratio is computed by dividing total equity by total liabilities.

Explanation:

The debt ratio is a financial ratio which determines company leverage. This ratio is calculated by dividing total liabilities by total assets of the company. The higher the debt ratio means corporations are exposed to high risk. This ratio helps to find out company ability to pay off its liabilities with its assets. This ratio is used by both internal and external users of accounting information. This ratio helps potential investors to assess riskiness of a company.

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The balance in the office supplies account on January 1 was $7,362, the supplies purchased during January were $3,421, and the s

Zigmanuir [339]

Answer:

d.$8,327

Explanation:

The computation of the amount used in the adjusting entry is shown below:

= Beginning balance of office supplies + supplies purchased - ending balance of office supplies

= $7,362 + $3,421 - $2,456

= $8,327

The adjusting entry is

Supplies expense $8,327

To Supplies A/c $8,327

(Being the supplies expense is recorded)

For recording this transaction we debited the supplies expense as it increased the expense account and credited the supplies account as it reduced the asset account

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4 years ago

Tript Corporation has a process costing system and uses the weighted-average method. The company had 3,000 units in work in proc

Alekssandra [29.7K]

Answer:

11,600 units

Explanation:

Equivalent units for conversion costs :

Equivalent units = 10,000 x 100 % + 4,000 x 40 % = 11,600

The equivalent units for February for conversion costs were: 11,600 units

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3 years ago

You are scheduled to receive a $500 cash flow in one year, a $1,000 cash flow in two years, and pay an $800 payment in three yea

Sunny_sXe [5.5K]

Answer:

present value = $9320.06

Explanation:

given data

cash flow 1 year C1 = $500

cash flow 2 year C2 = $1000

pay 3 year C3 = $800

interest rates r = 10 percent per year = 0.10

solution

we get here present value that is

present value = $\frac{C1}{(1+r)} +\frac{C2}{(1+r)^2} +\frac{C3}{(1+r)^3}$ ....................1

put here value and we will get

present value = $\frac{500}{(1+0.10)} +\frac{10000}{(1+0.10)^2} +\frac{800}{(1+0.10)^3}$

present value = $9320.06

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3 years ago

A country is said to be in ____ when the income its residents earn from exports is equal to the money its residents pay to other

Leviafan [203]

Balance of trade equilibrium

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3 years ago

Jerry deposited $10,000 in a bank account, and 10 years later he closes out the account, which is worth $18,000. The annual rate

MArishka [77]

Answer:

Explanation:

given that

principal P= $10,000

final amount A= $18,000

time t= 10 years

To find the annual rate we will use the formula below and solve for r

$r = [(\frac{A}{P} )^\frac{1}{t} - 1]$

Substituting our data into the expression and solving for r we have

$r = [(\frac{18000}{10000} )^\frac{1}{10} - 1]\\\\r = [(1.8 )^\frac{1}{10} - 1]\\\\r = [(1.8 )^0^.^1 - 1]\\\\r = [(1.8 )^0^.^1 - 1]\\r={1.06054-1}\\\\r= 0.06054$

Calculate rate of interest in percent

r = 0.06054* 100

r= 6.054% per year

4 0

3 years ago