Which of the following statements is an accurate interpretation of a debt ratio of .60?
A) The company has $.60 of current liabilities for every $1.00 of current assets.
B) The company has $.60 of assets for every $1.00 of liabilities.
C) The company has $.60 of current assets for every $1.00 of current liabilities.
D) The company has $.60 of liabilities for every $1.00 of assets.

Question

Quizplus · Accepted Answer

A debt ratio of .60 indicates that for every $1.00 of assets, the company has $.60 of liabilities.

Which of the Following Statements Is an Accurate Interpretation of a Debt