Identify the Correct Formula Below Used to Calculate the Debt

question 102

Multiple Choice

Identify the correct formula below used to calculate the debt ratio.

• A)Total Equity/Total Liabilities.
• B)Total Liabilities/Total Equity.
• C)Total Liabilities/Total Assets.
• D)Total Assets/Total Liabilities.
• E)Total Equity/Total Assets.

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Definitions:

Labour Force

The total number of people who are available to work in an economy, including both the employed and the unemployed who are seeking employment.

Employment Insurance

A government program that provides temporary financial assistance to unemployed workers.

Company Pension Plan

A retirement savings program provided by an employer, offering employees a fixed payout upon retirement based on their earnings history, tenure, and age.

Psychological Counselling

Professional guidance provided by a psychologist focusing on resolving personal or psychological challenges.