How Many of These Ratios Measure the Relationship Between Debt

question 52

Multiple Choice

How many of these ratios measure the relationship between debt and equity?
The debt ratio
The equity (proprietorship) ratio
The leverage ratio (total assets/total equity)
The current ratio

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Water Vascular System

A hydraulic system used by echinoderms, like starfish, for locomotion, food and water transportation, and waste removal.

Asexual Fragmentation

A method of asexual reproduction where an organism breaks into fragments, each of which develops into a new organism.

Bilateral Symmetry

A body plan in which there are two symmetrical halves of the body, with a distinct left and right, matching one another.

Radial Symmetry

A body plan in which body parts are arranged around a central axis, characteristic of many invertebrates like jellyfish and sea urchins.