Total Liabilities Divided by Total Assets Is the Formula to Calculate

question 4

Multiple Choice

Total liabilities divided by total assets is the formula to calculate an entity's:

• A) Current ratio
• B) Capitalisation ratio
• C) Equity ratio
• D) Debt ratio

---

Definitions:

Rules of Civil Procedure

Legal rules that govern the process of litigation in civil courts, outlining the steps for conducting a lawsuit.

Individual Courts

Specific judicial bodies responsible for adjudicating legal disputes and matters.

Federal District Courts

The trial courts of the federal court system in the United States, where civil and criminal cases are filed.

Initial Client Interview

The first meeting between a lawyer and a potential client to discuss the client's legal issues and how the lawyer may assist.