A company's balance sheet reports total liabilities of $2,000,000. The debt to equity ratio is 2.5. What is the company's stockholders' equity?
A) $800,000
B) $320,000
C) $1,000,000
D) $2,000,000
Answer: A
Which of the following accounts is not reported in the stockholders' equity section of the balance sheet?
A) Treasury Stock.
B) Common Stock.
C) Sales Revenue.
D) Retained Earnings.
Answer: C
The times interest earned ratio is calculated as
A) Interest expense/Net income.
B) Net income/Interest expense.
C) (Net income + interest expense + tax expense)/Interest expense.
D) Interest expense/(Net income + interest expense + tax expense).
Answer: C
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