The Higher the Debt Ratio the Higher the Level of Risk

question 232

True/False

The higher the debt ratio the higher the level of risk of not being able to meet obligations.

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Definitions:

Tax Information

Relevant data and documents related to tax laws, filing requirements, rates, and deductions applicable to individuals or businesses.

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Chart of Accounts

A systematic listing of all accounts used in the general ledger of an organization, categorized by assets, liabilities, equity, revenues, and expenses.