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Which of the Following Mathematical Expressions Calculates the Debt Ratio

Question 69

Multiple Choice

Which of the following mathematical expressions calculates the debt ratio?


A) Debt ratio = Net operating income ÷ Total debt
B) Debt ratio = Long-term liabilities ÷ Current liabilities
C) Debt ratio = Sales ÷ Total liabilities
D) Debt ratio = Total liabilities ÷ Total assets
E) Debt ratio = Interest charges ÷ Total liabilities

Correct Answer:

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