The debt-to-assets ratio is the:
A) ratio of current liabilities to current assets.
B) ratio of long term liabilities to fixed assets.
C) ratio of total liabilities to total assets.
D) proportion of short-term liabilities to total liabilities. Debt to assets ratio = Total liabilities/Total assets.

Question

Quizplus · Accepted Answer

The debt-to-assets ratio is a measure of a company's financial leverage, and it measures the extent to which a company's assets are financed by debt. It is calculated by dividing total liabilities by total assets. Options A, B, and D do not accurately represent the debt-to-assets ratio.

The Debt-To-Assets Ratio Is The