The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.
A)liability-to-asset
B)sales-to-ownership
C)debt-to-revenue
D)liability-to-ownership
E)debt-to-equity

Question

Quizplus · Accepted Answer

The debt-to-equity ratio measures the relationship between the amount of debt financing (liabilities) and the amount of equity financing, indicating the balance between debt and equity used by a company to finance its operations.

The _____ Ratio Measures the Relationship Between the Amount of Debt