When Analyzing a Company's Assets-To-Equity Ratio, If the Ratio Has

question 20

Multiple Choice

When analyzing a company's assets-to-equity ratio, if the ratio has a value that is equal to one, then the company has

• A) No debt
• B) More debt than equity
• C) Equal amounts of debt and equity
• D) No stockholders' equity

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Definitions:

Entity's Risks

Various uncertainties and potential adverse effects that can impact an organization's financial performance or operations.

Past Performance

Historical operational or financial results of an individual or organization, often used as an indicator or benchmark for future potentials.

Operating Segments

Components of an enterprise engaged in business activities from which it may earn revenues and incur expenses, including discrete financial information available.

Gross Margins

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage, indicating the efficiency of sales relative to production costs.