All of the Following Statements Accurately Describe the Debt Ratio

question 58

Multiple Choice

All of the following statements accurately describe the debt ratio except.

• A)It is of use to both internal and external users of accounting information.
• B)A relatively high ratio is always desirable.
• C)The dividing line for a high and low ratio varies from industry to industry.
• D)Many factors such as a company's age,stability,profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio.
• E)The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

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Definitions:

Homologous Chromosomes

Chromosomes that are similar in length, gene position, and centromere location, carrying the same type of genetic information from each parent, making a pair in a diploid cell.

Anaphase I

A stage in meiosis I where homologous chromosomes separate and are pulled to opposite poles of the cell, unlike in mitosis where sister chromatids separate.

Reproductive Strategy

A method or approach employed by species to ensure their continuation through the production of offspring.

Sexual Reproduction

A biological process by which new individual organisms are produced through the combination of genetic materials from two different cells.