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Total Assets to Debt Ratio

It establishe...

Question

It establishes a relationship between total assets and total long-term debts. This ratio is ____________.

A

Current ratio

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B

Total assets to debt ratio

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C

Debt equity ratio

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D

None of these

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Solution

The correct option is B
Total assets to debt ratio

It establishes a relationship between total assets and total long-term debts. This ratio is Total assets to debt ratio.

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