A company has total assets of $600,000 and total liabilities of $200,000. What is the company's Debt Ratio?

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 4E: Accounting equation The total assets and total liabilities (in millions) of McDonalds Corporation...
icon
Related questions
Question
Question 6 of 10
A company has total assets of $600,000 and total liabilities of $200,000. What is the company's
Debt Ratio?
O Debt Ratio = $400,000 (Total Assets – Total Liabilities)
O Debt Ratio = 3 (Total Assets/Total Liabilities)
O Debt Ratio = 0.33 (Total Liabilities / Total Assets)
O Debt Ratio = $800,000 (Total Assets + Total Liabilities)
Next
P Type here to search
144
&
#
$
8
67
E
GS
K
SE
11
B.
at gr
Σ
Z.
4,
Transcribed Image Text:Question 6 of 10 A company has total assets of $600,000 and total liabilities of $200,000. What is the company's Debt Ratio? O Debt Ratio = $400,000 (Total Assets – Total Liabilities) O Debt Ratio = 3 (Total Assets/Total Liabilities) O Debt Ratio = 0.33 (Total Liabilities / Total Assets) O Debt Ratio = $800,000 (Total Assets + Total Liabilities) Next P Type here to search 144 & # $ 8 67 E GS K SE 11 B. at gr Σ Z. 4,
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning