Which of the Following Statements Regarding Ratios Is True

question 134

Multiple Choice

Which of the following statements regarding ratios is true?

• A) All other things equal, a lower debt-to-assets ratio indicates a riskier financing strategy.
• B) A lower asset turnover ratio is a positive indicator of the efficiency of a company.
• C) The net profit margin ratio cannot be used to indicate how well a company is controlling its expenses.
• D) Ratios can be useful in the attempt to measure key relationships within a business.

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Definitions:

Large-Scale

Referring to activities, operations, or phenomena that involve a wide scope or extensive size, often impacting a large number of people or areas.

National Standardized Test

A type of examination that is administered and scored in a consistent manner across different locations and institutions to assess individuals against a common standard.

Universal Curriculum

An educational program or set of standards designed to be accessible and applicable to all students, regardless of background or ability.

Individualized Education Plan

An Individualized Education Plan (IEP) is a customized educational plan designed to meet the unique needs of a student with a disability, ensuring they receive appropriate support in school.