Which of the Following Factors Is Assessed Using the Debt

question 153

Multiple Choice

Which of the following factors is assessed using the debt ratio?

• A)expenses
• B)revenues
• C)risk
• D)income

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Definitions:

Depreciation Expense

Spreading out the expense of a physical asset over the period it's in use.

Operating Activities

Components of a business's cash flow statement that relates to its core operations, including cash received from sales and cash paid for goods and services.

Net Income

The amount of money remaining after all operating expenses, taxes, and other costs have been subtracted from total revenue.

Net Cash Flows

Net cash flows illustrate the amount of money being received minus the amount of money being spent by a business over a specific period, reflecting its financial health.