The Ratio Calculated by Dividing Total Liabilities by Owners' Equity

question 181

Multiple Choice

The ratio calculated by dividing total liabilities by owners' equity is the _____.

• A) current ratio
• B) debt-to-assets ratio
• C) acid-test ratio
• D) debt-to-owners' equity ratio
• E) return on equity

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Definitions:

Government's Possession

Property, sites, or assets that are owned and managed by a governmental body.

Securities and Exchange Commission (SEC)

An independent U.S. federal agency responsible for regulating the securities industry, enforcing federal securities laws, and ensuring that markets operate fairly and efficiently.

Independent Agency

is a government body established to regulate and oversee specific areas of public policy, distinct from executive departments.

Judicial Review

The process by which courts examine government actions to determine if they conform to the constitution or other legal standards.