Using ratio analysis to assess financial risk The following information was drawn from the balance sheets of two companies: Required a. Compute the debt to assets ratio to measure the level of financial risk of both companies. b Compare the two ratios computed in Requirement a to identity which company has the higher level of financial risk. IFRS and U.S. GAAP a. Describe some ways that U.S. GAAP and IFRS are different. b. How are U.S. GAAP and IFRS alike for reporting purposes