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Claudia Ltd's Statement of Financial Position Is Shown Below

Question 42

Multiple Choice

Claudia Ltd's statement of financial position is shown below. Claudia Ltd's statement of financial position is shown below.   The above balances include a receivable from Jeremy Ltd for an amount of $100,000 and a payable to Jeremy Ltd for $50,000.A debt contract with ABC Bank signed by Claudia Ltd requires a debt equity ratio of no more than 50%. Assuming a right to set-off exists with Jeremy Ltd,what is the debt to equity ratio of Claudia Ltd? A)  13% B)  40% C)  45% D)  50% E)  All of the given answers. The above balances include a receivable from Jeremy Ltd for an amount of $100,000 and a payable to Jeremy Ltd for $50,000.A debt contract with ABC Bank signed by Claudia Ltd requires a debt equity ratio of no more than 50%.
Assuming a right to set-off exists with Jeremy Ltd,what is the debt to equity ratio of Claudia Ltd?


A) 13%
B) 40%
C) 45%
D) 50%
E) All of the given answers.

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