Asked by Hafsa Shahzada on May 14, 2024

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The ratio that indicates the amount of assets that are financed by creditors is:

A) debt to stockholders' equity.
B) debt to total retained earnings ratio.
C) debts to total assets ratio.
D) None of the above

Debts to Total Assets Ratio

A financial metric indicating the proportion of a company's assets that are financed through debt, assessing financial leverage.

Debt to Stockholders' Equity

A financial ratio that measures the proportion of a company's debt to the equity held by its shareholders.

Debt to Total Retained Earnings Ratio

A financial measure used to evaluate the proportion of a company's debt compared to its retained earnings.

  • Understand and calculate various financial ratios related to debt management.
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KV
KaRmA Vs. JuJu2.0May 21, 2024
Final Answer :
C
Explanation :
The debts to total assets ratio indicates the amount of assets that are financed by creditors, as it compares the total debts of a company to its total assets.