Which of the Following Statements Is True of the Debt

question 50

Multiple Choice

Which of the following statements is true of the debt to equity ratio?

• A)The higher the debt to equity ratio,the lower the company's financial risk.
• B)The higher the debt to equity ratio,the greater the company's financial risk.
• C)If the debt to equity ratio is greater than 1,the company is financing more assets with equity than with debt.
• D)If the debt to equity ratio is less than 1,the company is financing more assets with debt than with equity.

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Definitions:

Water Supply

The provision or availability of water for various uses, including drinking, irrigation, and industrial needs, through natural or artificial means.

Mineral Supply

The availability of inorganic substances necessary for various life processes and industrial applications, often extracted from the Earth's crust.

Humus

Organic component of soil formed by the decomposition of leaves and other plant material, rich in nutrients.

Weathered Rock

Rock that has been altered in physical composition or chemical properties by environmental factors such as water, wind, or temperature changes.