which of the following metrics shows that a company does not rely heavily on debt to run its business?\na.)…

which of the following metrics shows that a company does not rely heavily on debt to run its business?\na.) debt to owners equity ratio\nb.) cash budget\nc.) capital budget\nd.) current ratio

which of the following metrics shows that a company does not rely heavily on debt to run its business?\na.) debt to owners equity ratio\nb.) cash budget\nc.) capital budget\nd.) current ratio

Answer

Brief Explanations:

The debt - to - owner's equity ratio compares a company's debt to the equity of its owners. A low ratio indicates less reliance on debt. A cash budget shows cash inflows and outflows over a period. A capital budget is for long - term asset investment planning. The current ratio measures short - term liquidity. So, the debt - to - owner's equity ratio is relevant to debt reliance.

Answer:

a.) Debt to owner's equity ratio