A Company's Debt Ratio Is Increasing Every Year and Currently

question 56

Multiple Choice

A company's debt ratio is increasing every year and currently stands at 90%.This indicates:

• A)an improving financial position.
• B)an increase in financial risk.
• C)a greater ability to pay current and long-term liabilities.
• D)a company that is going bankrupt.

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Definitions:

Fascia

A band or sheet of connective tissue, primarily collagen, beneath the skin that attaches, stabilizes, encloses, and separates muscles and other internal organs.

Tendon

A durable, pliable strip of connective tissue that links muscles with bones.

Arthroscopy

A minimally invasive surgical procedure used to diagnose and treat joint problems through a small incision using an arthroscope.

Diagnostic Procedure

A medical test performed to aid in the diagnosis or detection of disease, injury, or other medical condition.