All of the Following Statements Accurately Describe the Debt Ratio

question 65

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 low ratio signifies lower risk.
• C)The ratio is computed by dividing total liabilities by total assets.
• D)Higher financial leverage means greater risk.
• E)The ratio is computed by dividing total equity by total liabilities.

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Definitions:

Specificity of Training

A principle stating that to become better at a particular activity, one must perform that activity as the primary form of training.

Weight Training

A form of physical activity focused on improving strength and endurance by lifting weights.

Cardiorespiratory Endurance

The ability of the heart and lungs to supply oxygen-rich blood to working muscle tissues and the ability of those muscles to use oxygen to produce energy for movement.

Bicycling

A form of exercise or transportation involving the use of a bicycle, which can improve cardiovascular health and increase muscle strength.