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:

Expenses

The outflows or consumption of assets or incurring/liabilities (creating a liability) from a company's operations aimed at generating revenue.

Revenue

The total income generated from normal business operations, including sales of goods and services before any expenses are subtracted.

Withdrawals

The removal of funds from a bank account or the taking out of cash or assets from a business by its owner for personal use.

Assets

Economic resources owned or controlled by a business, expected to bring future benefits.