All of the Following Statements Regarding the Ratio of Liabilities

question 210

Multiple Choice

All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

• A) a ratio of 1 indicates that liabilities equal stockholders' equity
• B) sole proprietorships can use this ratio but substitute total owner's equity for total stockholders' equity
• C) the higher this ratio, the better able a business is to withstand poor business conditions and pay creditors
• D) the lower this ratio, the better able a business is to withstand poor business conditions and pay creditors

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Definitions:

Fluoride Supplements

Compounds containing anionic fluoride used to prevent dental caries and strengthen bone density.

Exclusively Breastfed

Infants who receive no other food or drink besides breast milk, no supplemental liquids, for a specific period since birth.

Fluoridated Water

Water that has fluoride added to it to prevent tooth decay.

Socioeconomic Status

An overall assessment of a person's economic and social position in relation to others, based on income, education, and occupation.