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The Liabilities of a Company at the End of the Year

Question 6

Multiple Choice

The liabilities of a company at the end of the year are $500,000 and the total stockholders' equity at the end of the year is $1,500,000. The ratio of liabilities to stockholders' equity is


A) 0.50 to 1.
B) 0.33 to 1.
C) 0.67 to 1.
D) 3 to 1.

Correct Answer:

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