Multiple Choice
Which statement relating to the debt ratio of a company is not true?
A) It can be calculated by relating liabilities to total funds.
B) It is an indicator of a company's long-term solvency.
C) It is a measure of the extent of a company's gearing.
D) A higher level of debt is normally preferable from a creditor's point of view.
Correct Answer:
Verified
Correct Answer:
Verified
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