The financial measure of net debt evaluates how much a company owes after taking into account
A) the effects of inflation on debt.
B) money on hand that could be used to eliminate debt.
C) the amount of debt that could be refinanced.
D) how much debt could be eliminated by declaring bankruptcy.

Question

Quizplus · Accepted Answer

Net debt is the amount of debt a company has after subtracting their available cash and cash equivalents. Therefore, money on hand that could be used to eliminate debt is taken into account when calculating net debt.

The Financial Measure of Net Debt Evaluates How Much a Company