The ratio that states the proportion of a company's assets that is financed with debt is the:
A)debt ratio.
B)leverage.
C)times-interest-earned ratio.
D)rate of return on total assets.

Question

Quizplus · Accepted Answer

The debt ratio measures the proportion of a company's assets that is financed with debt. It is calculated by dividing the total liabilities by the total assets.

The Ratio That States the Proportion of a Company's Assets