Which of the Following Mathematical Expressions Calculates the Debt Ratio

question 44

Multiple Choice

Which of the following mathematical expressions calculates the debt ratio?

• A)Debt ratio = Net operating income ÷ Total debt
• B)Debt ratio = Long-term liabilities ÷ Current liabilities
• C)Debt ratio = Sales ÷ Total liabilities
• D)Debt ratio = Total liabilities ÷ Total assets
• E)Debt ratio = Interest charges ÷ Total liabilities

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