Question

Krammer Company has liabilities equal to _______ of the total assets. Krammer's stockholders' equity is $45,000.

1) one fourth
2) one third
3) one half
4) three fourths

Answer 1

Without the total assets of Krammer Company, we cannot calculate the ratio of liabilities. The question lacks crucial information needed to determine the proportion of liabilities to total assets.

Step-by-step explanation:

The question posed involves calculating the liabilities as a proportion of the total assets for Krammer Company, given the stockholders' equity. To solve this, we first need to understand that the basic accounting equation is Assets = Liabilities + Stockholders' Equity. If we have the Stockholders' Equity, we can solve for Liabilities if we know the proportion they represent of the total Assets. Unfortunately, the information provided in the question does not include the actual total assets or the exact amount of liabilities, so we are unable to calculate this directly.