Which of the Following Statements Is Not True

Multiple Choice

Which of the following statements is not true?

A) If the equity ratio is less than 50% then the entity is more reliant on debt funding than equity funding.
B) The sum of the debt ratio and the equity ratio does not have to equal 100%.
C) The debt ratio indicates how many dollars of debt exist per dollar of assets.
D) If the debt to equity ratio is more than 100%, the entity is more reliant on debt funding than equity funding.