If total assets decrease but total liabilities remain the same,what is the impact on the debt-to-assets ratio?
A)It decreases.
B)It remains the same.
C)It cannot be determined without additional information.
D)It increases.

Question

Quizplus · Accepted Answer

The debt-to-assets ratio equals total liabilities divided by total assets.If total liabilities remain the same while total assets decrease,the ratio will increase.

If Total Assets Decrease but Total Liabilities Remain the Same,what