Which Financial Statement(s)do You Need to Calculate the Debt-To-Equity Ratio

question 159

Multiple Choice

Which financial statement(s) do you need to calculate the debt-to-equity ratio?

• A)only the income statement
• B)only the balance sheet
• C)both the income statement and the balance sheet
• D)both the statement of cash flows and the income statement

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Definitions:

Constant

In mathematics and statistics, a fixed value that does not change within the scope of a given problem.

Interval

A range between two numbers or points, often used to specify a period of time or a statistical range.

Standard Normal Distribution

A specific probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Z-score

A metric that depicts how far a certain value stands from the mean of a collection of values, using the unit of standard deviations for measurement.