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:

Differentiation

The process of distinguishing or creating differences, often used in the context of products, services, or organizational roles.

Vertical Division

The organizational structure where tasks and responsibilities are divided based on hierarchy or levels of authority.

Vertically

Pertains to the orientation or direction that goes from top to bottom or bottom to top, often used to describe the arrangement of hierarchies or layers.

Communication

The act or process of using words, symbols, or actions to express ideas, thoughts, or feelings, and to exchange information between individuals or groups.