The Pledged Assets to Secured Liabilities Ratio

question 193

Multiple Choice

The pledged assets to secured liabilities ratio:

• A) Can be calculated from the book value of assets and liabilities.
• B) Can always be calculated from information provided in the financial statements.
• C) Is not relevant to secured creditors.
• D) Is a method of determining if the pledged assets of a debtor will provide adequate security for a creditor.
• E) Is calculated by dividing book value of secured liabilities by book value of pledged assets.

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