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

Question

Quizplus · Accepted Answer

An increase in total assets while total liabilities remain the same will result in a decrease in the debt-to-assets ratio, as the denominator (total assets) will increase while the numerator (total liabilities) remains constant.

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