The Pledged Assets to Secured Liabilities Ratio

Multiple Choice

The pledged assets to secured liabilities ratio

A) Is calculated by dividing book value of secured liabilities by book value of pledged assets
B) Can be calculated from the book value of assets and liabilities
C) Is not relevant to secured creditors
D) Can always be calculated from information provided in the financial statements
E) Is a method of determining if the pledged assets of a debtor will provide adequate security for a creditor