The Debt to Assets Ratio Is Computed by Dividing

question 27

Multiple Choice

The debt to assets ratio is computed by dividing

• A) current liabilities by total assets.
• B) long-term liabilities by total assets.
• C) total liabilities by total assets.
• D) total assets by total liabilities.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, typically measured during a specific period for financial analysis.

Statement of Cash Flows

A summarized record of all the cash coming into a company from operations and investment sources, and all the cash spent on business activities and investments within a certain period.

Cash Dividends

Payments made by a corporation to its shareholder members, usually derived from profits earned.

Stockholders

Individuals or entities that own shares of stock in a corporation, giving them ownership interest.