AFP
CTP · Question #60
(Topic 1) Which of the following is a ratio that is often used by commercial banks to measure a company's leverage and does not include the effect of assets that are difficult to value or are NOT easi
The correct answer is B. Debt to tangible net worth. See the full explanation below for the reasoning.
Question
- (Topic 1)
Which of the following is a ratio that is often used by commercial banks to measure a company’s leverage and does not include the effect of assets that are difficult to value or are NOT easily converted to cash?
Options
- ALong-term debt to capital
- BDebt to tangible net worth
- CTotal liabilities to total assets
- DCash flow to total debt
How the community answered
(35 responses)- A6% (2)
- B71% (25)
- C14% (5)
- D9% (3)
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