Identify the Correct Formula Below Used to Calculate the Debt

question 102

Multiple Choice

Identify the correct formula below used to calculate the debt ratio.

• A)Total Equity/Total Liabilities.
• B)Total Liabilities/Total Equity.
• C)Total Liabilities/Total Assets.
• D)Total Assets/Total Liabilities.
• E)Total Equity/Total Assets.

---

Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration of living organisms and combustion processes.

Compound

A compound is a substance made up of two or more different elements chemically bonded together in a fixed ratio.

Ag+

A silver ion, typically carrying a single positive charge, often used in silver compounds or in photography.

Chlorine

A highly reactive halogen element used in water purification, disinfectants, and in the production of chlorinated compounds.