The Long-Term Debt to Assets Ratio Is Computed by Dividing

question 33

Multiple Choice

The long-term debt to assets ratio is computed by dividing

• A) Long-term debt by total assets
• B) Total assets by total liabilities
• C) Total liabilities by total assets
• D) Current liabilities by total assets

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Definitions:

Retailer

A business or person that sells goods directly to consumers.

Credit Period

The duration during which a buyer can defer payment to a seller for goods and services purchased on credit.

Payment Terms

Conditions under which a seller will complete a sale, often detailing the time limit for payment and any discounts for early payment.

Amount Owing

The total sum of money that is due to be paid.