If the Debt-To-Assets Ratio Is 0

question 48

True/False

If the debt-to-assets ratio is 0.63,it means that 37% of the company's financing has been provided by shareholders' equity.
BT: Comprehension

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Definitions:

Discontinued Operation

A component of a business that has been disposed of or is held for sale and represents a separate major line of business or geographical area of operations, segregated in financial reporting.

Management's Discussion

A section in a company's annual report where senior executives provide their perspective on the financial health, results, and future outlook of the company.

Journal Entries

Records of financial transactions in the accounting system that are entered in the general journal.

Liquidity

Liquidity refers to the ease with which assets can be converted into cash without significantly affecting their market price, crucial for meeting short-term obligations.