The debt-to-assets ratio is the:
A)ratio of current liabilities to current assets.
B)same calculation as the current ratio,but with total assets instead of short-term assets.
C)ratio of total liabilities to total assets.
D)proportion of total liabilities financed by creditors.

Question

Quizplus · Accepted Answer

The debt-to-assets ratio is calculated by dividing total liabilities by total assets. This ratio measures the proportion of a company's assets that are financed by debt, giving investors an idea of the company's financial risk.

The Debt-To-Assets Ratio Is The