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Ratio is an index that measures one variable relative to another and is generally expressed as a percentage or a rate. The ratio that tests how leveraged an organisation is, may be referred to as
  • a)
    Current ratio
  • b)
    Return-on-investment
  • c)
    Debt ratio
  • d)
    Net profit margin
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Ratio is an index that measures one variable relative to another and i...
Debt ratio measures the percentage of total assets financed by debt (including current liabilities). So, it tests how leveraged an organisation is.Hence, option (c) is correct.
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Ratio is an index that measures one variable relative to another and is generally expressed as a percentage or a rate. The ratio that tests how leveraged an organisation is, may be referred to asa)Current ratiob)Return-on-investmentc)Debt ratiod)Net profit marginCorrect answer is option 'C'. Can you explain this answer?
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