The long-term debt to assets ratio is computed by dividing
A) Long-term debt by total assets
B) Total assets by total liabilities
C) Total liabilities by total assets
D) Current liabilities by total assets

Question

Quizplus · Accepted Answer

The long-term debt to assets ratio is a measure of a company's leverage, indicating the percentage of a company's assets that are financed with long-term debt. It is calculated by dividing long-term debt by total assets. Option A is the only choice that correctly aligns with this definition.

The Long-Term Debt to Assets Ratio Is Computed by Dividing