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Which of the Following Ratios Measure the Relationship Between Debt

Question 21

Multiple Choice

Which of the following ratios measure the relationship between debt and equity?
I. The debt ratio
II. The current ratio
III. The equity (proprietorship) ratio
IV. The leverage ratio (total assets/total equity)


A) I, II, III and IV
B) III and IV only
C) I and III only
D) I, III and IV only

Correct Answer:

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