All of the Following Statements Accurately Describe the Debt Ratio

question 58

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 high ratio is always desirable.
• C)The dividing line for a high and low ratio varies from industry to industry.
• D)Many factors such as a company's age,stability,profitability and cash flow influence the determination of what would be interpreted as a high versus a low ratio.
• E)The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt.

---

Definitions:

Catheter

A flexible tube inserted into the body for the purpose of removing fluids, administering fluids or gases, or accessing certain parts of the body for medical reasons.

Urinary Bladder

A cavity-filled organ located in the lower abdomen responsible for holding urine from the kidneys prior to its elimination.

Menstrual Cycle

The regular natural change that occurs in the female reproductive system that makes pregnancy possible, typically described as a monthly cycle.

AFP

Alpha-fetoprotein, a protein that is produced by the liver and yolk sac of a fetus, often measured during pregnancy.