________ ratios examine the organization's use of debt to finance its assets,and considers whether it's able to meet the interest payments on its debt.
A)Liquidity
B)Leverage
C)Conformance
D)Activity
E)Profitability

Question

Quizplus · Accepted Answer

Leverage ratios examine how much a company relies on debt financing and whether it can sustain the interest payments on that debt. Common leverage ratios include debt-to-equity ratio, interest coverage ratio, and debt-to-assets ratio.

________ Ratios Examine the Organization's Use of Debt to Finance