Which of the Following Does the Debt Ratio Measure

question 65

Multiple Choice

Which of the following does the debt ratio measure?

• A) The company's overall ability to pay its liabilities
• B) The company's ability to pay current liabilities with current assets
• C) The proportion of the company's assets that are financed with equity
• D) The company's ability to invest in growth

---

Definitions:

Collagen

A protein that is a major component of connective tissues in the body, providing structural support and strength.

Absorption

The process by which substances are taken up by a tissue, such as the absorption of nutrients by the intestines.

Vitamin C

A water-soluble vitamin found in various foods, necessary for the growth, development, and repair of all body tissues, and functioning as an antioxidant.

Cyanocobalamin

is a synthetic form of vitamin B12 used to treat and prevent B12 deficiency and related conditions.