Which of the Following Statements Is an Accurate Interpretation of a Debt

question 49

Multiple Choice

Which of the following statements is an accurate interpretation of a debt ratio of 0.60?

• A)The company has $0.60 of current assets for every $1.00 of current liabilities.
• B)The company has $0.60 of current liabilities for every $1.00 of current assets.
• C)The company has $0.60 of assets for every $1.00 of liabilities.
• D)The company has $0.60 of liabilities for every $1.00 of assets.

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Definitions:

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In economics and finance, a state where supply equals demand, and market forces are in balance, resulting in stable prices.

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