Question

The ratio of liabilities to net worth is an indication of: A) The amount of debt...

The ratio of liabilities to net worth is an indication of:

A)

The amount of debt to equity

B)

The amount of return on investment

C)

The amount of equity capital

D)

The amount of debt capital

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Answer #1

Answer- The ratio of liabilities to net worth is an indication of= The amount of debt to equity

Explanation- Total liabilities to net worth ratio means the total value liabilities, includes short & long term loans/obligations, divided by the shareholder’s equity/value of net worth.

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