At December 31, 2019, David Bash Company has total assets of $1,000,000, total liabilities of $720,000, and total owner's equity of $280,000.
At December 31, 2019, David Bash Company's debt-to-equity ratio is:
A) 0.28
B) 5.00
C) 0.72
D) 2.57

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities by total owner's equity. For David Bash Company, this is $720,000 / $280,000 = 2.57.

At December 31, 2019, David Bash Company Has Total Assets