Debt Ratio Is the Ratio of Total Debt to Total

question 6

True/False

Debt ratio is the ratio of total debt to total assets.

---

Definitions:

Journal Entry

A record in the accounting journals that documents a financial transaction.

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act, funding Social Security and Medicare programs, withheld from employees’ pay and matched by employers.

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.

State Income Taxes

Taxes imposed by individual states on the income generated by businesses and individuals within that state.