The Debt to Total Assets Ratio Is Calculated by Dividing

question 2

Multiple Choice

The debt to total assets ratio is calculated by dividing

• A)non-current liabilities by total assets.
• B)non-current liabilities by average assets.
• C)total liabilities by total assets.
• D)total liabilities by average assets.

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Definitions:

Average Variable Cost

The variable cost per unit of output, calculated by dividing the total variable costs by the quantity of output produced.

Market Price

The prevailing cost at which a service or product can be acquired or disposed of in a marketplace.

Marginal Cost

The cost of producing one more unit of a good or service, which can vary depending on the level of production.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, reflecting the cost per unit of output.