You have complete information about a company's balance sheet liabilities: Owners' equity $150 million and Debt $50 million. On the other hand. all you know about its assets is $20 million cash. What is the company's leverage ratio?
a) 0.333
b) 1.333
c) 0.133
d) 1.200
e) 1.467
Ans: b) 1.333
Business
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Which of the following accounts normally has a debit balance?
A. Accounts payable. B. Retained earnings. C. Accounts receivable. D. Service revenue.
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