A firm has a long-term debt-equity ratio of 3 shareholders


1. When a trial balance is prepared, a contra-account appears immediately:

a. after the account it offsets but in the opposite column.

b. before the account it offsets but in the opposite column.

c. before the account it offsets and in the same column.

d. after the account it offsets and in the same column.

2. A firm has a long-term debt-equity ratio of .3. Shareholders’ equity is $1.08 million. Current assets are $252,000, and the current ratio is 1.8. The only current liabilities are notes payable. What is the total debt ratio? (Round your answer to 2 decimal places.) Total debt ratio

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Financial Management: A firm has a long-term debt-equity ratio of 3 shareholders
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