Which of the Following Statements Is TRUE

question 21

Multiple Choice

Which of the following statements is TRUE?

• A)The lower a firm's debt-to-equity ratio,the LESS room it has to take on additional debt.
• B)More stable industries,such as utilities,tend to have LOWER debt-to-equity ratios.
• C)Leverage ratios focus on INCOME STATEMENT items.
• D)There is NO GENERAL BENCHMARK FOR LEVERAGE RATIOS,and ideal values vary from industry to industry.

---

Definitions:

Reconstruction Acts

The Reconstruction Acts were a series of laws passed by the U.S. Congress in the late 1860s aimed at rebuilding and reorganizing the Southern states after the Civil War, including provisions for civil rights and the readmission of these states into the Union.

U.S. Civil War

A devastating conflict from 1861 to 1865 between the Northern states (Union) and Southern states (Confederacy), primarily over issues of slavery and states' rights.

International Events

Occurrences of significant global importance, involving multiple countries or having worldwide impacts.

Reconstruction

The period after the Civil War in the United States when the southern states were reorganized and reintegrated into the Union from 1865 to 1877.