Which Financial Ratio Measures the Extent to Which Borrowed Funds

question 68

Multiple Choice

Which financial ratio measures the extent to which borrowed funds have been used to finance the company's assets?

• A) debt to asset ratio
• B) debt to equity ratio
• C) long-term debt to capital structure
• D) times interest earned
• E) current liabilities to equity

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Definitions:

Slope

A measure of the steepness, incline, or grade of a line, typically determined by the ratio of the vertical change to the horizontal change.

Point C

In the context of economic models, Point C can represent a specific position on a graph, such as on a supply and demand curve or a production possibilities frontier, illustrating a particular economic condition or choice.

Slope

Measures the steepness, incline, or grade of a line on a graph, representing the rate of change of the variables plotted on the axes.

Indeterminate

An outcome or situation that cannot be definitively determined or predicted due to the presence of too many unknown variables.