Which of the Following Is a Leverage Ratio

question 10

Multiple Choice

Which of the following is a leverage ratio?

• A) The current ratio
• B) The inventory turnover ratio
• C) The average collection period
• D) The debt ratio

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Definitions:

Sales

Revenue earned from selling goods or services over a certain period.

Percent Change

A measure that indicates the relative difference between an initial value and a final value, expressed as a percentage.

Wrong Amount

The incorrect calculation or entry of a figure in accounting records, transactions, or financial statements.

Account Balance

The amount of money present in a financial account at any given time.