Which of the Following Statements About the Debt-To-Equity Ratio Is

question 19

Multiple Choice

Which of the following statements about the debt-to-equity ratio is NOT true?

• A) A high ratio indicates that the company is highly geared.
• B) From a creditor's point of view,a higher measure is desirable.
• C) The debt-to-equity ratio indicates the proportion of borrowing to owners' investment.
• D) The debt-to-equity ratio shows the degree of risk borne by the creditors vis-à-vis the shareholders.

---

Definitions:

AutoKeys

A feature or macro in software applications that automatically executes a series of commands or keystrokes, often used for repetitive tasks or to customize application behavior.

Key Combination

A specific set of keys pressed simultaneously on a keyboard to perform a certain action quickly.

Arguments

In programming and software, variables or specific data that are passed into a function or procedure to customize its operation or outcome.

Additional Information

Supplementary details or data provided to expand understanding or context beyond the primary content.