Which of the Following Statements Best Compares Long-Term Borrowing Capacity

question 19

Multiple Choice

Which of the following statements best compares long-term borrowing capacity ratios?

• A)The debt/equity ratio is more conservative than the debt ratio.
• B)The debt ratio is more conservative than the debt/equity ratio.
• C)The debt/equity ratio is more conservative than the debt to tangible net worth ratio.
• D)The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
• E)The debt ratio is more conservative than the debt to tangible net worth ratio.

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Definitions:

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A three-stage response that the body uses to respond to stress, consisting of alarm, resistance, and exhaustion phases.

Resources

Assets, materials, or substances that are available and useful in achieving goals or completing tasks.