Which of the Following Statements Is Not True

question 38

Multiple Choice

Which of the following statements is not true?

• A) If the equity ratio is less than 50% then the entity is more reliant on debt funding than equity funding.
• B) The sum of the debt ratio and the equity ratio does not have to equal 100%.
• C) The debt ratio indicates how many dollars of debt exist per dollar of assets.
• D) If the debt to equity ratio is more than 100%, the entity is more reliant on debt funding than equity funding.

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Definitions:

Oxygen

A chemical element with the symbol O and atomic number 8; it is a highly reactive nonmetal and an oxidizing agent that readily forms oxides with most elements as well as with other compounds.

Electron Orbitals

Regions in an atom where there is a high probability of finding electrons, with each orbital having a distinctive shape and energy level.

Covalent Compound

A chemical compound formed by the sharing of pairs of electrons between atoms.

Dichlorodifluoromethane

A chemical compound once widely used as a refrigerant and propellant but now recognized for its ozone-depleting properties.