If a Firm's Total Debt Ratio Is Greater Than

question 28

Multiple Choice

If a firm's total debt ratio is greater than .5, then:

• A) its current liabilities are quite high.
• B) its debt-equity ratio exceeds 1.0.
• C) it has too few total assets.
• D)it has more long-term debt than equity.

---

Definitions:

Family Counselor

A mental health professional specializing in providing therapeutic services to families, aiming to resolve conflicts and improve communication.

Technique

A specific method or way of doing something, often implying a skill or proficiency in a particular area.

Differentiation

The process of distinguishing or discriminating between two or more things, often used in the context of cells in biology or variables in mathematics.

Independent Individual

A person who functions autonomously, making decisions and acting based on personal judgment without undue influence from others.