Question
Which of the following statements is true about the debt ratio? a.The debt ratio measures the percent of the company's debt that is financed by
Which of the following statements is true about the debt ratio?
a.The debt ratio measures the percent of the company's debt that is financed by its assets.
b.The use of the debt ratio decreases the financial leverage of a company.
c.The debt ratio is useful in assessing the solvency and future earning potential of a company.
d.The higher the debt ratio, the less risk a company is taking in managing its operations.
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Financial Accounting Fundamentals
Authors: John Wild, Ken Shaw, Barbara Chiappetta
6th edition
1259726916, 978-1259726910
