Match each term with the correct statement below.
-indicators of the firm's ability to handle long-term debt
A) balance sheet
B) assets
C) current assets
D) fixed assets
E) liabilities
F) current liabilities
G) long-term liabilities
H) owners equity
I) income statement
J) liquidity ratios
K) profitability ratios
L) debt ratios

Question

Quizplus · Accepted Answer

Debt ratios are financial metrics that assess a company's ability to handle its long-term debt obligations. These ratios, such as the debt-to-equity ratio and the debt-to-asset ratio, provide insights into the firm's financial leverage and its capacity to meet its long-term financial commitments.

Match Each Term with the Correct Statement Below