Ask Question
BusinessBusiness
6 October, 14:19

Total liabilities - Total assets represents which type of financial rato?

A. Current ratio

B. Retuin on equity

C. Debt ratio

D. Debt to equity ratio

+4
Answers (1)
  1. 6 October, 17:07
    0
    C. Debt ratio

    Explanation:

    Debt ratio is calculated by dividing total liabilities with the total assets. The debt ratio show how high the leverage of a business. A higher debt ratio also means the business will have a higher risk of default to pay their loans.

    The current ratio is calculated by dividing current assets with the current liability. There is no mention of equity in the question, so option B and D definitely wrong.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Total liabilities - Total assets represents which type of financial rato? A. Current ratio B. Retuin on equity C. Debt ratio D. Debt to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
2.) Since 2005, publicly traded companies in the European Union have been required to use IFRS in preparing their consolidated financial statements. a.) Explain the EU's objective in requiring the use of IFRS. b.
Answers (1)
Jeanne and Mark are buying a home. They've been told their mortgage payment will be $1,072 per month. There's also an additional amount of $335.62 being added to the monthly payment, bringing their total to $1,407.62.
Answers (1)
An infrared barbeque grill was originally listed at $769.99. the price was first discounted to$550.54, followed by a final discount of $449.79. what was the single equivalent rate of discount at the final price
Answers (1)
on January 1, 2017, anodel, Inc. acquired a machine for 1,010,000. the estimated useful life of the asset is five years. residual value at the end of fiev years is estimated to be 62000.
Answers (1)
S7-2 (similar to) Foley Distribution Service pays $ 290 comma 000 for a group purchase of land, building, and equipment.
Answers (1)
New Questions in Business
Where does money come from
Answers (2)
Accounts that are increased with a debit include A : revenue. B : assets. C : equity. D : liability.
Answers (1)
Jay is an 21 year old college senior. He reads on a financial blog that interest rates are being lowered by the Federal Reserve. Which of these situations might Jay decide to do based on this information?
Answers (2)
Your text discusses several challenges facing managers today. As Cook continues to grow Apple, he is likely to encounter which of those challenges?
Answers (1)
Jennifer just moved to a job as a retail salesperson in the same company where she was previously working as a business-to-business salesperson. Which of the following changes can she expect
Answers (1)
Home » Business » Total liabilities - Total assets represents which type of financial rato? A. Current ratio B. Retuin on equity C. Debt ratio D. Debt to equity ratio
Sign Up Forgot Password?