Which of the Following Statements Is an Accurate Interpretation of a Debt

Multiple Choice

Which of the following statements is an accurate interpretation of a debt ratio of 0.60?

A) The company has $0.60 of current assets for every $1.00 of current liabilities.
B) The company has $0.60 of current liabilities for every $1.00 of current assets.
C) The company has $0.60 of assets for every $1.00 of liabilities.
D) The company has $0.60 of liabilities for every $1.00 of assets.