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139) The debt ratio is used: A) To measure the ratio of equity to expenses. B) To assess the risk associated with a company's use of liabilities. C) To assess market expectations for future growth. D) To determine how efficient the company is using its assets. E) To determine the profitability of a company. Answer: B Difficulty: 2 Medium Topic: Debt Ratio Learning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition. Bloom's: Understand AACSB/Accessibility: Analytical Thinking / Keyboard Navigation AICPA: BB Industry; FN Risk Analysis 140) Identify the correct formula below used to calculate the debt ratio. A) Total Equity/Total Liabilities. B) Total Liabilities/Total Equity. C) Total Liabilities/Total Assets. D) Total Assets/Total Liabilities. E) Total Equity/Total Assets. Answer: C Difficulty: 2 Medium Topic: Debt Ratio Learning Objective: 02-A2 Compute the debt ratio and describe its use in analyzing financial condition. Bloom's: Remember AACSB/Accessibility: Analytical Thinking / Keyboard Navigation AICPA: BB Industry; FN Risk Analysis

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Test Bank for Fundamental Accounting Principles 24th Edition Wild  

Fundamental Accounting Principles 24th Edition Wild Test Bank 2019 (9781259916960) (1259916960). Instant test bank download. Download from h...

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