The debt ratio measures the ratio of liabilities to
A)net income.
B)assets.
C)revenue.
D)stockholders' equity.

Name: The debt ratio measures the ratio of liabilities to A)net income. B)assets. C)revenue. D)stockholders' equity.
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Question

Quizplus · Accepted Answer

The debt ratio is calculated as Total Liabilities divided by Total Assets. Therefore, it measures the amount of a company's financing that comes from debt rather than stockholders' equity or revenue.

The Debt Ratio Measures the Ratio of Liabilities to