Which Debt Ratio Would Indicate the BEST Overall Ability of an Organization

question 28

Multiple Choice

Which debt ratio would indicate the BEST overall ability of an organization to pay its debts?

• A)60%
• B)25%
• C)40%
• D)130%

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Definitions:

Number Of Operators

The total count of individuals or machines operating within a given process or system at a specific time.

Number Of Complaints

A quantitative indicator of customer dissatisfaction, measuring how many complaints a business or organization has received.

Factory Overhead Cost Budget

A financial plan outlining the expected indirect manufacturing costs, including utilities, maintenance, and depreciation.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, such as raw materials and direct labor.