________ ratios show the funds supplied by creditors and shareholders.
A) Liquidity
B) Current
C) Net working capital
D) Leverage
E) Profitability

Name: ________ ratios show the funds supplied by creditors and shareholders. A) Liquidity B) Current C) Net working capital D) Leverage E) Profitability
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Question

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Leverage ratios measure the extent to which a company uses debt financing compared to equity financing. Therefore, they reflect the funds supplied by creditors (debt) and shareholders (equity).

________ Ratios Show the Funds Supplied by Creditors and Shareholders