Which of the Following Is Not a True Statement

question 2

Multiple Choice

Which of the following is not a true statement?

• A)The debt to equity ratio measures a company's risk and is calculated as total liabilities divided by stockholders' equity.
• B)Leverage enables a company to earn a higher return using debt than without debt.
• C)Return on assets is calculated as net income divided by the ending balance for total assets.
• D)The times interest earned ratio compares interest expense with income available to pay interest charges.

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Definitions:

Ancient Greeks

Refers to the people and culture of Greece during the classical period, renowned for their advancements in philosophy, mathematics, astronomy, and democracy.

Romans

An ancient civilization originating from the city of Rome in modern-day Italy, known for its vast empire, cultural, and political innovations.

Arabs

A term referring to people originating from the Arab world, which includes 22 countries in the Middle East and North Africa with shared cultural and linguistic traits.

Chloropromazine

An antipsychotic medication used to treat several mental health disorders, such as schizophrenia and bipolar disorder, by altering the effects of certain chemicals in the brain.