Which of the Following Calculates the Debt-To-Owners' Equity Ratio

question 209

Multiple Choice

Which of the following calculates the debt-to-owners' equity ratio?

• A) Long-term liabilities divided by owners' equity
• B) Current liabilities divided by owners' equity
• C) Long-term liabilities divided by retained earnings
• D) Total liabilities divided by retained earnings
• E) Total liabilities divided by owners' equity

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Definitions:

Permitted Actions

Actions that are allowed or sanctioned by law, regulation, or explicit permission.

Title

A legal term referring to the legal rights of ownership and possession of a particular property or asset.

Encumbrances

Legal claims or liabilities on property or assets that may affect their use or transferability, such as mortgages or liens.

Obligation

A legal or moral commitment to perform or refrain from performing some action.