Indicate Whether Each of the Following Statements About Financial Statement

question 73

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
_____ a) Solvency ratios measure a company's long-term debt paying ability and its financial structure.
_____ b) A company with a high debt to assets ratio probably would be considered to have a high level of financial risk.
_____ c) The debt to equity ratio and debt to assets ratio are two ways to measure the same relationship.
_____ d) From the point of view of stockholders, a decline in the debt to equity ratio is always good news.
_____ e) The lower the debt to equity ratio, the higher a company's financial leverage.