Joe is examining the percentage of total funds in a business provided by its creditors.He is working with the ________ ratio.
A)current
B)quick
C)debt
D)turnover

Question

Quizplus · Accepted Answer

The debt ratio measures the percentage of total funds provided by creditors. Current ratio measures a company's ability to pay short-term obligations, quick ratio measures a company's ability to pay immediate debts, and turnover ratio measures a company's efficiency in managing assets. None of these ratios specifically focus on the percentage of total funds provided by creditors.

Joe Is Examining the Percentage of Total Funds in a Business