Which of the Following Statements Is TRUE of the Debt

question 206

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, the company is financing more assets with equity than with debt.
• D) If the debt to equity ratio is less than 1, the company is financing more assets with debt than with equity.

---

Definitions:

Statistically Insignificant

A term used to describe results that lack enough statistical evidence to conclude that a certain effect or difference is present.

Analogue Study

An investigation or experiment that replicates real-world conditions in a controlled setting to understand behaviors or phenomena.

Epidemiological

Pertaining to epidemiology, which is the study of the distribution and determinants of health-related states or events in specific populations.

Single-Subject

A research design focusing on the response of a single participant, allowing for detailed observation and analysis of individual behavior.