Question

The denominator of the debt to total assets ratio is: A) Total fixed assets only B)...

The denominator of the debt to total assets ratio is:

A) Total fixed assets only

B) Total fixed assets + total current assets

C) Total current assets only

D) Total assets + stockholders' liability

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Answer #1

Option B is the answer

​​​​​​

Debt to assets ratio

= Debt/Total assets

Total assets = Current assets + Fixed assets.

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