The Debt Ratio Is Calculated by Dividing Total Assets by Total

question 107

True/False

The debt ratio is calculated by dividing total assets by total liabilities.

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Definitions:

CCA Rate

Capital Cost Allowance rate, which is the percentage rate at which Canadian businesses can claim depreciation on assets for tax purposes.

Operating Cash Flow

The amount of cash generated by a company's regular business operations, indicating its ability to pay bills and fund operations.

Depreciation

A method to allocate a portion of the original cost of an asset to expense over its expected useful life to reflect its decreasing value.

Tax Rate

The slice of a corporation's or individual's income designated for tax.