Match the Ratio That Goes with Each Formula $\frac {\text { Total Liabilities }} { \text {Shareholders' Equity} }$

question 49

Multiple Choice

Match the ratio that goes with each formula.
- $\frac {\text { Total Liabilities }} { \text {Shareholders' Equity} }$

• A)times interest earned
• B)fixed charge coverage
• C)debt ratio
• D)debt/equity ratio
• E)debt to tangible net worth

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Definitions:

Special Journal

A specialized accounting journal designed to record a specific type of transaction consistently, such as sales or purchases.

Electronic Accounting System

Computerized systems used for tracking and managing financial transactions and accounts.

General Ledger Accounting Systems

Comprehensive accounting systems that collect, classify, and summarize financial transactions to create financial statements.

Cash Receipts

The collection of money (cash, checks, wire transfers) by a business during a given period, often recorded in the cash receipts journal.