Which of the Following Is the Formula to Measure Debt

question 53

Multiple Choice

Which of the following is the formula to measure debt ratio?

• A) Average Inventory/Total Debts
• B) Sales/Average Inventory
• C) Net Income/Owner's Equity
• D) Total Debts/Total Assets
• E) Current Assets/Current Liabilities

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Definitions:

Population Proportion

A fraction or percentage that represents part of a whole or group within a population that shares a particular characteristic.

Formula

A symbolic representation of a principle or a set of mathematical relations, often used to solve problems or to define scientific laws.

Z Test Statistic

A statistic that measures the difference between the observed value and the hypothesized population mean in units of the standard deviation.

Null Hypothesis

Refers to a statement or assumption that there is no difference or effect, used as a starting point for statistical testing to be challenged by the alternative hypothesis.