The ratio that measures the percentage of financing from creditors is the:
A)current ratio.
B)times interest earned ratio.
C)debt-to-assets ratio.
D)Price/Earnings ratio.

Name: The ratio that measures the percentage of financing from creditors is the: A)current ratio. B)times interest earned ratio. C)debt-to-assets ratio. D)Price/Earnings ratio.
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Question

Quizplus · Accepted Answer

The debt-to-assets ratio indicates the proportion of total assets that creditors finance.The percent of equity financing can be inferred from that ratio.

The Ratio That Measures the Percentage of Financing from Creditors