Which of the following classifications of ratios measures the degree and effect of the firm's use of borrowed funds to finance its operations?
A) liquidity
B) debt
C) equity
D) profitability

Question

Quizplus · Accepted Answer

The classification of ratios that measures the degree and effect of the firm's use of borrowed funds to finance its operations is known as debt ratios. These ratios indicate the level of debt in the capital structure of the company and how it affects its financial performance. Examples of debt ratios include debt-to-equity ratio, debt-to-assets ratio, and interest coverage ratio.

Which of the Following Classifications of Ratios Measures the Degree