The ratio that indicates the amount of assets that are financed by creditors is:
A) debt to stockholders' equity.
B) debt to total retained earnings ratio.
C) debts to total assets ratio.
D) None of the above

Question

Quizplus · Accepted Answer

The debts to total assets ratio indicates the amount of assets that are financed by creditors, as it compares the total debts of a company to its total assets.

The Ratio That Indicates the Amount of Assets That Are