In Assessing the Debt Ratios, Analysts Customarily Vary the Standard

question 48

Multiple Choice

In assessing the debt ratios, analysts customarily vary the standard in relation to the stability of the firm's earnings and cash flows from operations.Banks have liabilities to assets ratios, typically

• A)over 10%.
• B)over 30%.
• C)over 50%.
• D)over 70%.
• E)over 90%.

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration in many living organisms and for combustion.

Fermentation

A metabolic process that converts sugar to acids, gases, or alcohol in the absence of oxygen.

Alcohol

An organic compound characterized by one or more hydroxyl (-OH) groups attached to a carbon atom, commonly used in beverages, medicine, and as a solvent.

Lactic Acid

A compound produced in the muscles during strenuous exercise, responsible for the feeling of muscle fatigue.