If a company is relying on borrowing and credit too extensively,this will probably be reflected in the _____.
A)current usage ratio
B)past utilization ratio
C)debt utilization ratio
D)liquid utilization ratio
E)fixed asset usage ratio

Question

Quizplus · Accepted Answer

The correct term is "debt utilization ratio," which measures how much a company is relying on borrowed funds to finance its operations. This ratio is a key indicator of the extent to which a company is using debt to fund its activities.

If a Company Is Relying on Borrowing and Credit Too