If the Ratio of Total Stockholders' Equity to Total Assets

Multiple Choice

If the ratio of total stockholders' equity to total assets was greater in 2020 than in 2019, then:

A) total assets increased by a greater amount than did total stockholders' equity.
B) the ratio of total liabilities to total assets was smaller in 2020 than in 2019.
C) creditors would consider it riskier to lend to this company in 2020 than in 2019.
D) the ratio of total liabilities to total assets was larger in 2020 than in 2019.