The relationship between total liabilities and total assets is the ________.
A) debt ratio
B) debt to equity ratio
C) current ratio
D) earnings per share

Question

Quizplus · Accepted Answer

The relationship between total liabilities and total assets is known as the debt ratio. This ratio measures the proportion of a company's assets that are financed through debt, and is calculated by dividing total liabilities by total assets.

The Relationship Between Total Liabilities and Total Assets Is the ________