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.

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Definitions:

Federal Legislation

Laws passed by the national government of a federal country.

Waiver

An intentional relinquishment or surrender of some known right or privilege.

Earmark

A legislative provision that directs approved funds to be spent on specific projects, often within a particular congressional district.

Federal Mandate

A requirement imposed by the federal government on state and local governments to comply with certain rules and regulations.