Multiple Choice
Which of the following statements is TRUE regarding the debt ratio?
A) The debt ratio focuses on the total liabilities of an organization.
B) The debt ratio reveals the percentage of a business' assets financed with liabilities.
C) The debt ratio is used to analyze a business's ability to pay its current obligations as they come due.
D) Both A and B are true statements regarding the debt ratio.
Correct Answer:
Verified
Correct Answer:
Verified
Q141: Contingent liabilities pose an ethical challenge because
Q142: Benefits are extra compensation that is paid
Q143: The rate of interest that investors are
Q144: $300,000 of 6%, 20-year bonds were sold
Q145: The current portion of long-term debt represents
Q147: Why are contingent liabilities considered unique and
Q148: $200,000 of 6%, 25-year bonds were sold
Q149: The tax rate on the OASDI portion
Q150: If the likelihood of an obligation is
Q151: A $30,000 bond issue with a stated