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Which of the following statements is true about the debt ratio? a. The higher the debt ratio, the less risk a company is taking in
Which of the following statements is true about the debt ratio? a. The higher the debt ratio, the less risk a company is taking in managing its operations. b. The debt ratio measures the percent of the company's debt that is financed by its assets. c. The use of the debt ratio decreases the financial leverage of a company. d. The debt ratio is useful in assessing the solvency and future earning potential of a company.
Which of the following statements is true about the debt ratio?
a. The higher the debt ratio, the less risk a company is taking in managing its operations.
b. The debt ratio measures the percent of the company's debt that is financed by its assets.
c. The use of the debt ratio decreases the financial leverage of a company.
d. The debt ratio is useful in assessing the solvency and future earning potential of a company.
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
