Which of the Following Is the Correct Formula to Calculate

question 207

Multiple Choice

Which of the following is the correct formula to calculate the debt ratio?

• A) Debt ratio = Total liabilities × Total assets
• B) Debt ratio = Total liabilities + Total assets
• C) Debt ratio = Total liabilities - Total assets
• D) Debt ratio = Total liabilities / Total assets

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Definitions:

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Articles of Confederation

The first written constitution of the United States, in effect from 1781 to 1789, before being replaced by the current U.S. Constitution.

Military Quotas

Predetermined numbers or percentages dictating the recruitment, promotion, or inclusion of individuals within the military, which can encompass various criteria, such as nationality, ethnicity, or gender.

Interstate Commerce

Trade, traffic, or transportation involving the exchange of goods, services, or persons between states.