The debt-to-assets ratio is the: Multiple Choice ratio of current liabilities to current assets. same calculation as the current ratio, but with total assets instead of short-term assets. ratio of total liabilities to total assets. proportion of total liabilities financed by creditors.

The debt-to-assets ratio is the: Multiple Choice ratio of current liabilities to current assets. same calculation as the current ratio, but with total assets instead of short-term assets. ratio of total liabilities to total assets. proportion of total liabilities financed by creditors.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5MC: Calculate the projected debt ratio, debt-to-equity ratio, liabilities-to-assets ratio,...

See similar textbooks

Related questions

Q: Describe the Ratios that show how a firm uses debt financing?

A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…

Q: Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier,…

A: Total Debts to Assets ratio = Long term debt + Short term DebtTotal Assets Equity Multiplier = Total…

Q: Calculate the following ratios from balance sheet statement for any organization: • Current ratio •…

A: The current and debt ratio is as follows: The resultant table is as follows:

Q: How is the short term debt repayment capacity of a company is assessed ? Choose the INCORRECT OPTION…

A: Current ratio is the ratio of current assets to the current liabilities.

Q: Describe the disclosures appropriate to long-term debt in its various forms and calculate related…

A: Long-term debts refer to the financial obligations of the company that are due for more than one…

Q: The leverage ratio is equal to average total __________divided by average _________________.a.…

A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…

Q: Briefly describe the ratios that can be used to evaluate a company’s ability to pay current…

A: The ratios used to evaluate the ability of the company to pay the current liabilities are working…

Q: Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned…

A: Long-term solvency ratio:- It is calculated to check the firm's long-term ability to meet its…

Q: how to calculate and interpret basic financial statement ratios?

A: The question is based on the concept of Financial Accounting. Financial ratios are a mathematical…

Q: The current ratio is calculated as current liabilities divided by current assets. O a. FALSE O b.…

A: the current ratio is a measure of the companies ability to pay its customers with the cash generated…

Q: The current ratio is O a solvency measure that indicates the margin of safety for bondholders O…

A: Note: Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio, return on…

A: The below ratios are computed using the 2016 financial statements of Walmart Company.

Q: Debt investments are recorded at cost when purchased. True or False True False

A: Introduction: When an investor loaned money to a corporation or project sponsor, the investor…

Q: Compare and contrast the lenders financial ratios and for what purpose they use the ratios

A: Financial ratios refer to the relative magnitude of the selected values measured in numerical that…

Q: tatements, how would one calculate the Book Debt-to-Equity Ration and the Market Debt-to-Equity…

A: Debt to Equity ratio is the ratio which indicates the relative proportion of debt and equity which…

Q: The debt to equity ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio.…

A: Debt to equity ratio is calculated the solvency of the company by checking how much of the equity…

Q: Which of the following risk is affected largely by the debt-to-equity ratio? Liquidity risk…

A: The debt-to-equity (D/E) ratio reflects a firm's revenue obligations to its shareholder equity and…

Q: The debt ratio is calculated by dividing total assets by total liabilities Group of answer choices…

A: The correct option with proper explanation are as follows

Q: Debt to Total Assets Ratio can be improved by: A. Borrowing More, B. Issue of Debentures, C. Issue…

A: Debt to total assets ratio measures the proportion of total assets finance by creditors. it can be…

Q: For which of the following balance sheet items will the book value and market value most likely be…

A: The financial statements of a company consists of income statement and balance sheet. The balance…

Q: &G Co. has an equity multiplier of 2.4, and its assets are financed with some combination of…

A: Equity multiplier = Total Assets/ Equity 2.40 = (Equity + Debt)/ Equity 2.40 x Equity = Equity+ Debt…

Q: Inflation can have significant effects on income statements and balance sheets, and therefore on the…

A: Inflation : It is the situation in which consumer's demand exceeds supply for goods and services.…

Q: Which one of the following is the best indicator of long-term debt paying ability? A)Working…

A: Working capital turnover Working capital turnover is a ratio that measures how efficiently a company…

Q: Ratio between current assets and liabilities is called ratio

A: The ratio between current assets and current liabilities is called the current ratio instead of…

Q: Indicate where each of the following items is reported on financial statements. Choose from the…

A: Financial statement: Financial statements are condensed summary of transactions communicated in…

Q: expense on short term debt should be based on projected balances and short term interest rates.…

A: Basic Concept of accounting

Q: Briefly describe the ratios that can be used to evaluate a company’s ability to pay long-term debt.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: What are two ratios indicating how well the company manages its debt ?.

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Explain the major financial ratios and financial cycles, debt ratio, debt to equity ratio, return on…

A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…

Q: QUESTION 2 Which of the followings is commonly used for debt ratings? return on net capital total…

A: Debt ratings: Debt rating is a scoring method used to tell about the creditworthiness of debt.…

Q: The debt to equity ratio is calculated as a. Total assets / Total equity. b. Current liabilities /…

A: Debt to equity ratio: The ratio of company’s total debt to the total stockholders’ equity is known…

Q: A debt – to income ratio can easily be calculated be from a what kind of statement? Investment…

A: The debt-to-income ratio seems to be the percentage of your monthly earnings that you allocate to…

Q: Debt to Equity Total Debt Ratio Times Interest Earned

A: Financial ratios are quantitative measures used by analysts to determine the financial performance…

Q: a. What is debt management ratio? b. What is profitability ratio?

A: Since, you have asked multiple question, we will solve one question for you. if you want any…

Q: How to find Total Debt to Total Assets ration using an income statement, balance sheet or cash flow.

A: Total-debt-to-total-assets is the leverage ratio that describes a company's total debt in relation…

Q: atios are used to analyze activities in the following areas: a. asset management; liquidity;…

A: The question is based on the concept of Ratio Analysis.

Q: Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:…

A: Ratio Analysis is the financial analysis technique which evaluate the profitability, liquidity,…

Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: Calculate the following ratios and interpret the results: (Use the information attached with the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Compute for the current ratio and describe the enterprise's capability to pay with current assets.…

A: Current ratio is the indicator of short term liquidity of the company and debt ratio indicate how…

Q: The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total…

A: Ratio analysis is used to evaluate the balance sheet figure and income statement.

Q: Debt to equity ratio

A: (Note: Since you have posted a multi-part question, we will solve the first three parts for you. For…

Q: The debt to equity ratio is calculated as Total assets / Total equity. Current liabilities / Total…

A: Debt to equity ratio:The ratio of company’s total debt to the total stockholders’ equity is known as…

Question

The debt-to-assets ratio is the:
Multiple Choice
ratio of current liabilities to current assets.
same calculation as the current ratio, but with total assets instead of short-term assets.
ratio of total liabilities to total assets.
proportion of total liabilities financed by creditors.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Calculate the projected debt ratio, debt-to-equity ratio, liabilities-to-assets ratio, times-interest-earned ratio, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios?
The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total assets.c. total assets by long-term liabilities.d. long-term liabilities by total assets.
The debt to equity ratio is expressed as a. Total Liabilities Total Equity. b. Operating Income Interest Expense. c. Total Liabilities + Total Assets. d. Long-Term Debt Total Equity.
Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob. Current ratioc. Liability ratiod. Asset ratio
The debt to equity ratio is calculated as a. Total assets / Total equity. b. Current liabilities / Total equity. c. Total liabilities / Total assets. d. Total liabilities / Total equity.
The debt to equity ratio is calculated as Total assets / Total equity. Current liabilities / Total equity. Total liabilities / Total assets. Total liabilities / Total equity.
Which of the following ratios is used to analyze liquidity?a. Earnings per share.b. Debt-to-assets.c. Current ratio.d. Both b and c.
Using balance sheet information, the ____ ratio indicates your ability to meet current debt payments. Group of answer choices savings liquidity cash debt service solvency
Based on financial reports prepare ratio analysis and interpret the result of the Following ratios: B) Leverage : Debt to Total Assets Ratio, Debt to Equity Ratio
Illustrate how the debt-to-equity ratio (total debt over total equity)(distinct from the debt ratio) impacts the return on equity?
Explain debt to equity ratio and how to calculate.
Calculate the leverage ratio which includes total debt to total assets ratio, equity multiplier, debt to equity ratio, current liabilities to total debt ratio, interest coverage, and fixed charges coverage.