Ratios that focus on the proportion of total assets, Financial Management

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Ratios that focus on the proportion of total assets

1) Ratios that focus on the proportion of total assets financed by a firm’s creditors is referred to as:

a) debt ratios

b) coverage debt ratios

2) The U.S. tax structure influences a firm’s willingness to finance with debt. The tax structure____________ more debt

a) discourages

b) encourages

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Financial Management: Ratios that focus on the proportion of total assets

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Financial Management: Ratios that focus on the proportion of total assets

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