Question

Debt management ratios: a. measure the amount of debt the firm uses. b. measure how effectively a firm is managing its assets. c. show the relationship of a firms cash and other current assets to its current liabilities. d. show the combined effects of all areas of the firm on operating results.

Answer 1

a. measure the amount of debt the firm uses.

Step-by-step explanation:

In simple words, the debt management stated the management of the debt that reflects the agreement with the unsecured creditors stating the time period. It usually happens with a motive for an extended period of time, so that he or she can have more time to repay their debt.

After extending the time period, the payment is made on the installment on a regular basis to the company that manage the debt.