Which of these ratios measure the extent to which the firm uses debt (or financial leverage) versus equity to finance its assets?
A) debt management ratios
B) equity ratios
C) financial ratios
D) liquidity ratios

Question

Quizplus · Accepted Answer

Debt management ratios, also known as leverage ratios, measure the extent to which a firm uses debt (or financial leverage) versus equity to finance its assets. These ratios are crucial for understanding how a company structures its financing and assesses the risk associated with its debt levels.

Which of These Ratios Measure the Extent to Which the Firm