Which One of These Statements Is Correct Regarding Ratio Analysis

Multiple Choice

Which one of these statements is correct regarding ratio analysis as a predictor of bankruptcy?

A) As early as four years before they went bankrupt, failing firms were earning a higher return on assets than firms that survived.
B) On average, failing firms have a lower ratio of liabilities to assets than surviving firms.
C) Failing firms have a lower EBITDA to total liabilities ratio than surviving firms.
D) Firms with a total debt to total assets ratio of 75% or less tend to survive rather than fail.