Which of the Following Is Not a True Statement

question 3

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.

---

Definitions:

Contractual Risk

The potential of loss arising from the obligations outlined in a contract not being met by one or more parties.

Content Writing

The creation of written material for websites, blogs, and social media platforms, aimed at engaging audiences and often optimized for search engines.

Publishing Company

An organization that specializes in the production and distribution of books, magazines, online content, or other forms of publications.

Content Services

Online services that provide users with digital content, such as news, music, video, and more, either for free or on a subscription basis.