Which of the Following Statements Is False When Describing the Debt

question 88

Multiple Choice

Which of the following statements is false when describing the debt ratio?

• A)It is of use to both internal and external users of accounting information
• B)A relatively high ratio is desirable
• C)The dividing line between a high and low ratio varies from industry to industry
• D)Many factors such as company's age,stability,profitability,and cash flow influence the determination of what would be interpreted as a high versus a low ratio
• E)The ratio might be used to help determine if a company could be capable of increasing its income by going into further debt

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Definitions:

Revenue Retrieval

The method for reclaiming income that was previously lost, underreported, or overlooked, through targeted financial strategies and actions.