Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios.
A) leverage
B) liquidity
C) activity
D) profitability

Name: Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ ratios. A) leverage B) liquidity C) activity D) profitability
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Question

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Leverage ratios measure the degree to which a firm relies on borrowed funds as opposed to funds contributed by the owners.

Financial Ratios That Reflect the Degree to Which a Firm