Leverage ratios indicate ________.
A) how well a company is making use of its assets
B) a firm's ability to pay its short-term debts
C) how well a company is making use of its investments
D) a firm's ability to pay its long-term obligations
E) a firm's ability to meet short-term obligations

Question

Quizplus · Accepted Answer

A)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
B)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
C)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
D)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.
E)A company's ability to pay its long-term debts is reflected in its leverage ratios, also known as debt ratios.

Leverage Ratios Indicate ________