Total assets divided by total debt is called
A) the income statement ratio.
B) debt ratio.
C) operating expenses.
D) cost of sales.
E) profit margin.

Name: Total assets divided by total debt is called A) the income statement ratio. B) debt ratio. C) operating expenses. D) cost of sales. E) profit margin.
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Question

Quizplus · Accepted Answer

The ratio of total assets to total debt is called the debt ratio. It measures the company's leverage or the extent to which it is using borrowed funds to finance its operations.

Total Assets Divided by Total Debt Is Called