If a Firm's Debt Ratio Is Greater Than 0

question 1

Multiple Choice

If a firm's debt ratio is greater than 0.5,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.

Recognize the physical indicators of various stages of adulthood and aging.

Understand Erikson's stages of psychosocial development across the lifespan.

Comprehend the psychosocial and health-related impacts of marriage and relationships.

Understand the key developmental changes that occur from late adulthood through to the elder years.

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Definitions:

Normal Credit

In accounting, it refers to the balance side (either credit or debit) that is expected for a particular type of account; for liability accounts, equity accounts, and revenue accounts, it is typically a credit balance.

Asset

Resources owned or controlled by a company expected to provide future economic benefits.

Liability

A financial obligation or debt that a company is required to repay to another entity in the future.

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financial activities over a period.