The financial ratio measured as total assets minus total equity, divided by total assets, is the:
A) Total debt ratio.
B) Equity multiplier.
C) Debt-equity ratio.
D) Current ratio.
E) Times interest earned ratio.

Question

Quizplus · Accepted Answer

The total debt ratio is calculated as (Total Assets - Total Equity) / Total Assets, which measures the proportion of a company's assets that are financed by debt.

The Financial Ratio Measured as Total Assets Minus Total Equity