Question 1
The debt ratio measures the ratio of liabilities to
◦ assets.
◦ revenue.
◦ stockholders' equity.
◦ net income.
Question 2
The formula for calculating the debt ratio is
◦ long-term liabilities divided by total assets.
◦ total liabilities divided by total liabilities and stockholders' equity.
◦ total debt divided by total stockholders' equity.
◦ total liabilities divided by total assets.