the debt ratio is computed by dividing:\na. total assets by total liabilities.\nb. total liabilities by…

the debt ratio is computed by dividing:\na. total assets by total liabilities.\nb. total liabilities by total assets.\nc. current liabilities by total assets.\nd. total assets by current liabilities.

the debt ratio is computed by dividing:\na. total assets by total liabilities.\nb. total liabilities by total assets.\nc. current liabilities by total assets.\nd. total assets by current liabilities.

Answer

Brief Explanations:

The debt ratio is a financial metric. It shows the proportion of a company's assets that are financed by debt. The formula for the debt ratio is $\text{Debt Ratio}=\frac{\text{Total Liabilities}}{\text{Total Assets}}$. This ratio helps in assessing a company's financial leverage and solvency.

Answer:

B. total liabilities by total assets.