4. A high ratio of liabilities to total assets may indicate all of the following except:...
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4. A high ratio of liabilities to total assets may indicate all of the following except: a. Total liabilities exceed equity. b. The company is financing its operations with a high percentage of debt. c. If operating performance declines, the company may face increased risk that it will not be able to pay its liabilities. d. The company's ability to borrow additional funds would be difficult for new expansion opportunities. 4. A high ratio of liabilities to total assets may indicate all of the following except: a. Total liabilities exceed equity. b. The company is financing its operations with a high percentage of debt. c. If operating performance declines, the company may face increased risk that it will not be able to pay its liabilities. d. The company's ability to borrow additional funds would be difficult for new expansion opportunities.
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Answer The correct option is a Total liabilities exceed equity A high ratio o... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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