The Ratio of Liabilities to Stockholders' Equity Is a Measure

question 98

True/False

The ratio of liabilities to stockholders' equity is a measure of the extent of leverage, or proportion of borrowed capital, with which a business operates.

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Definitions:

Sum

The result of adding two or more numbers or quantities.

Binomial Theorem

A fundamental theorem in algebra that describes the algebraic expansion of powers of a binomial. According to the theorem, it's possible to expand the polynomial u200b\( (a + b)^n \)u200b into a sum involving terms of the form u200b\( a^k b^{n-k} \)u200b.

Expand

In mathematics, to rewrite an expression or equation in an extended form by distributing or multiplying out brackets.

Pascal's Triangle

A triangular array of numbers in which the edges are 1's, and each interior number is the sum of the two numbers directly above it.