Terastar Corp.reports the following amounts: What is the ratio of cash to noncash assets?
$$\begin{array} { | c | c | c | }
\hline \text { Cash } & \text { Total Assets } & \text { Total Liabilities } \
\hline \$ 10,000 & \$ 50,000 & \$ 35,000 \
\hline
\end{array}$$
A)75%.
B)20%.
C)25%.

Question

Terastar Corp.reports the following amounts: What is the ratio of cash to noncash assets?
$$\begin{array} { | c | c | c | } 
\hline \text { Cash } & \text { Total Assets } & \text { Total Liabilities } \
\hline \$ 10,000 & \$ 50,000 & \$ 35,000 \
\hline
\end{array}$$
A)75%.
B)20%.
C)25%.

Quizplus · Accepted Answer

The ratio of cash to noncash assets is calculated as Cash / (Total Assets - Cash). In this case, the ratio is $10,000 / ($50,000 - $10,000) = 25%.

Terastar Corp A)75% B)20

Terastar Corp A)75%
B)20