Which of the Following Calculates the Debt-To-Owners' Equity Ratio

question 209

Multiple Choice

Which of the following calculates the debt-to-owners' equity ratio?

• A) Long-term liabilities divided by owners' equity
• B) Current liabilities divided by owners' equity
• C) Long-term liabilities divided by retained earnings
• D) Total liabilities divided by retained earnings
• E) Total liabilities divided by owners' equity

---

Definitions:

Profits

The financial gain calculated as the difference between the revenue earned from sales and the expenses, taxes, and costs incurred in producing those sales.

Short-Run Supply Curve

A graphical representation showing the relationship between the market price of a product and the amount of it that producers are willing to supply in the short term.

Marginal Cost Curve

A graph showing how the cost of producing one more unit of a good varies as the quantity of production increases.

Short Run

in economics, refers to a period during which at least one factor of production is fixed, and firms can adjust only the variable factors.