A firm has liabilities of $60,000 and stockholders' equity of $180,000.The percentage of total liabilities to total assets is
A) 25 percent.
B) 20 percent.
C) 50 percent.
D) 75 percent.

Question

Quizplus · Accepted Answer

Total assets are the sum of liabilities and stockholders' equity, which is $60,000 + $180,000 = $240,000. The percentage of total liabilities to total assets is ($60,000 / $240,000) * 100% = 25%.

A Firm Has Liabilities of $60,000 and Stockholders' Equity of $180,000.The