Which of the Following Statements Regarding Ratios Is True

question 23

Multiple Choice

Which of the following statements regarding ratios is true?

• A)All other things being equal,a lower debt-to-assets ratio indicates a riskier financing strategy.
• B)A lower asset turnover ratio is a favorable indicator of how efficiently a company is utilizing its resources.
• C)The net profit margin ratio cannot be used to indicate how well a company is controlling its expenses.
• D)Ratios can be used to compare companies of different sizes.

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Definitions:

Muscular Disorder

A variety of diseases that affect the muscular system, impairing muscle strength, flexibility, and function.

Tendon

A flexible but inelastic cord of strong fibrous collagen tissue attaching a muscle to a bone.

Sports-related Activity

Any physical activity or exercise that is competitive, organized, and follows specific rules, often involving teamwork or individual challenge.

Valve-like Structure

An anatomical feature or device that functions to control the flow of fluid, opening and closing to permit passage in one direction only.