The debttoasset ratio is classified under _____ ratios.
A) profitability
B) activity
C) liquidity
D) leverage

Question

The debt­to­asset ratio is classified under _____ ratios.
A) profitability
B) activity
C) liquidity
D) leverage

Quizplus · Accepted Answer

The debt-to-asset ratio measures the amount of debt financing that a company has relative to its total assets. It is a leverage ratio, which means it falls under the category of ratios that assess a company's ability to meet its financial obligations by examining its debt and equity relationships.

The Debt­to­asset Ratio Is Classified Under _____ Ratios

The Debttoasset Ratio Is Classified Under _____ Ratios