Which of the Following Statements Is False When Describing the Debt

Multiple Choice

Which of the following statements is false when describing the debt ratio?

A) It is of use to both internal and external users of accounting information
B) A relatively high ratio is desirable
C) The dividing line between a high and low ratio varies from industry to industry
D) Many factors such as company's age,stability,profitability,and cash flow influence the determination of what would be interpreted as a high versus a low ratio
E) The ratio might be used to help determine if a company could be capable of increasing its income by going into further debt