The Formula to Compute the Debt Ratio Is

question 29

Multiple Choice

The formula to compute the debt ratio is

• A)interest expense/income from operations.
• B)total liabilities/total assets.
• C)income from operations/interest expense.
• D)total assets/total liabilities.

---

Definitions:

Service Firms

Companies that provide intangible products or services to customers, as opposed to tangible goods.

Job Order Costing

An accounting method that accumulates costs based on individual jobs or orders, suitable for customized products.

Time Ticket

A record that tracks the amount of time an employee spends on various activities or tasks, used for billing clients or allocating labor costs.

Service Firms

Businesses that provide intangible products or services to consumers or other businesses.