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:

Customer's Specifications

These are detailed requirements provided by the customer regarding the design, functionality, and performance of a product or service.

Distribution Center

A specialized warehouse designed to store goods, often in bulk, before they are distributed to retailers or customers.

Time Utility

The increase in the value of a product or service by having it available at the most opportune time, enhancing satisfaction or usefulness.