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.

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