A firm has liabilities of $72,000 and stockholders' equity of $228,000. The percentage of total liabilities to total assets is:
A)25 percent.
B)24 percent.
C)32 percent.
D)76 percent.

Question

Quizplus · Accepted Answer

Total assets are the sum of liabilities and stockholders' equity, which is $72,000 (liabilities) + $228,000 (stockholders' equity) = $300,000. 
The percentage of total liabilities to total assets is: ($72,000/$300,000) x 100% = 24%. 
Therefore, the correct choice is B.

A Firm Has Liabilities of $72,000 and Stockholders' Equity of $228,000