If your debt-to-asset ratio is less than 1,which of the following will improve it?
A)Taking out a line of credit
B)Buying a car with cash
C)Paying off a student loan
D)Buying stock with cash

Question

Quizplus · Accepted Answer

Paying off a debt will decrease the amount of liabilities, which will increase the value of assets and improve the debt-to-asset ratio. Choices A, B, and D involve increasing liabilities, which would decrease the debt-to-asset ratio.

If Your Debt-To-Asset Ratio Is Less Than 1,which of the Following