Which of the Following Statements Is TRUE Regarding the Debt

question 146

Multiple Choice

Which of the following statements is TRUE regarding the debt ratio?

• A)The debt ratio focuses on the total liabilities of an organization.
• B)The debt ratio reveals the percentage of a business' assets financed with liabilities.
• C)The debt ratio is used to analyze a business's ability to pay its current obligations as they come due.
• D)Both A and B are true statements regarding the debt ratio.

---

Definitions:

Input Standards

Measure work efforts that go into a performance task.

Task Performance

The degree to which an individual or group successfully completes a given task or set of tasks.

Work Expended

The amount of effort, time, or resources invested in performing a job or accomplishing a task.

Controlling

Refers to the management function that involves measuring performance, comparing it with goals, and taking corrective action as needed to ensure that organizational objectives are achieved.