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Which of the Following Does the Debt Ratio Measure

Question 34

Multiple Choice

Which of the following does the debt ratio measure?


A) The debt ratio measures the company's overall ability to pay long-term liabilities.
B) The debt ratio measures the company's ability to pay current liabilities with current liabilities.
C) The debt ratio measures the proportion of the company's assets that are financed with debt.
D) Both A and C are true.

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