A firm has current liabilities of $60,000,stockholders' equity of $180,000 and total assets of $300,000.The percentage of total liabilities to total assets is
A) 20 percent.
B) 40 percent.
C) 60 percent.
D) 80 percent.

Question

Quizplus · Accepted Answer

Total liabilities are calculated as total assets minus stockholders' equity, which is $300,000 - $180,000 = $120,000. The percentage of total liabilities to total assets is ($120,000 / $300,000) * 100 = 40 percent.

A Firm Has Current Liabilities of $60,000,stockholders' Equity of $180,000