Which of the Following Statements Is True of the Debt

question 123

Multiple Choice

Which of the following statements is true of the debt to equity ratio?

• A)The higher the debt to equity ratio, the lower the company's financial risk.
• B)The higher the debt to equity ratio, the greater the company's financial risk.
• C)If the debt to equity ratio is greater than 1, then the company is financing more assets with equity than with debt.
• D)If the debt to equity ratio is less than 1, then the company is financing more assets with debt than with equity.

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Definitions:

Adult Levels

Stages or standards of physical, emotional, or intellectual development typically associated with adult maturity.

Months

Units of time in calendars that approximate the period of the lunar cycle, usually used as a measurement of the duration of events or periods of life.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.