Which of the Following Statements Is True Regarding the Relationship

question 94

Multiple Choice

Which of the following statements is true regarding the relationship of the debt-to-assets ratio and the debt-to-equity ratio?

• A)Debt to assets is usually greater than debt to equity.
• B)Debt to assets is usually less than debt to equity
• C)Debt to assets is usually equal to debt to equity.
• D)There is no constant relationship between these two ratios.

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Definitions:

Economics

Social science that analyzes the choices people and governments make in allocating scarce resources.

Substitute Goods

Products or services that can serve as replacements for each other, satisfying similar customer needs or desires.

Macroeconomic Effect

Refers to the large-scale impacts on an economy, including changes in inflation, unemployment, gross domestic product, and national income.

Microeconomics

studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.