Which of the Following Statements Is an Accurate Interpretation of the Debt

question 162

Multiple Choice

Which of the following statements is an accurate interpretation of the debt ratio?

• A) A debt ratio of 0.60 or lower is considered a high-risk ratio.
• B) A debt ratio above 1.00 is considered a good, safe ratio.
• C) A debt ratio of 2.0 indicates very strong ability to pay liabilities.
• D) A debt ratio of 0.60 or lower is a good, safe ratio.

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Definitions:

Weak Current

A relatively mild or gentle flow of water in a sea, river, or other body of water, which can influence local climates and marine transportation.

Steep Slopes

Land areas where the ground rises sharply, often leading to challenges in construction and increased risk of erosion.

Wind

The flow of gases on a large scale, primarily on Earth's surface, resulting from air moving from high pressure to low pressure areas.

Sedimentary Rocks

Rocks formed by the deposition and subsequent cementation of mineral or organic particles on the floor of oceans or other bodies of water.