If Mary wants to compare what her small business owes to what it owns in order to assess her ability to meet obligations in case of liquidation,she needs to look at the ________ ratio.
A)quick
B)total debt turnover
C)asset turnover
D)debt-to-net worth

Question

Quizplus · Accepted Answer

The debt-to-net worth ratio measures the amount of debt a business has compared to the value of its owners' equity, which can give insight into the business's ability to meet obligations in case of liquidation.

If Mary Wants to Compare What Her Small Business Owes