The Debt Ratio Is an Indicator of a Company's

question 40

Multiple Choice

The debt ratio is an indicator of a company's:

• A) relationship between current liabilities and current assets
• B) relationship between debt and interest expense
• C) relationship between interest expense and income
• D) percentage of assets financed with debt

---

Definitions:

Responding Stage

A phase in communication where feedback is given to the sender after receiving a message.

Oral Communication

The process of verbally conveying messages, ideas, or information from one person to another.

Poor Listening

The act of failing to effectively receive or interpret messages during the communication process.

Chain of Command

The formal line of authority, communication, and responsibility within an organization.