Which of the Following Is a Leverage Ratio

question 51

Multiple Choice

Which of the following is a leverage ratio?

• A) inventory turnover ratio
• B) return on sales
• C) debt-to-equity ratio
• D) acid-test ratio

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Definitions:

Current Account

A component of a country's balance of payments that measures the trade balance plus net income and direct payments between countries.

Flows of Funds

The movements of money between sectors of an economy, showing how funds are used and where they come from.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Balance of Payments

A financial statement that summarizes a country’s transactions with the rest of the world, including imports, exports, and capital flows.