If the Ratio of Total Stockholders' Equity to Total Assets

question 14

Multiple Choice

If the ratio of total stockholders' equity to total assets was greater in 2017 than in 2016,then

• A) total assets increased by a greater amount than did total stockholders' equity.
• B) the ratio of total liabilities to total assets was smaller in 2017 than in 2016.
• C) creditors would consider it riskier to lend to this company in 2017 than in 2016.
• D) the ratio of total liabilities to total assets was larger in 2017 than in 2016.

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Definitions:

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Orientation

The process of familiarizing a person with new surroundings, situations, or information, often used in educational and professional contexts.

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