Answered: The debt to equity ratio is calculated…

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.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 4DQ

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Question

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.

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