Which of the Following Does the Debt Ratio Measure

question 15

Multiple Choice

Which of the following does the debt ratio measure?

• A)The proportion of the company's assets that are financed with equity
• B)The company's ability to invest in growth
• C)The company's overall ability to pay its liabilities
• D)The company's ability to pay current liabilities with current assets

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Definitions:

Reliability

Refers to the consistency and stability of a measure or test over time.

Validity

The extent to which a test, scale, or measuring instrument accurately measures what it is intended to measure.

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related measure.

School Performance

School performance refers to how well students accomplish their educational tasks and meet the academic requirements of their grade level, often measured through grades and standardized tests.