This ratio measures the extent to which managers have used borrowed funds to finance investments:
A)quick ratio
B)debt-to-assets ratio
C)current ratio
D)times-covered ratio
E)all of these choices are incorrect

Question

Quizplus · Accepted Answer

The debt-to-assets ratio measures the extent to which managers have used borrowed funds (debt) to finance investments (assets). The ratio is calculated by dividing total debt by total assets. A high debt-to-assets ratio indicates that the company has a greater amount of debt relative to its assets and is therefore more leveraged.

This Ratio Measures the Extent to Which Managers Have Used