Which of the following is true of a leverage ratio?It is a measure of the extent to which a company uses debt compared to equity.O It is a measure of whether the company will have sufficient cash to pay its bills over the following year.O It is a comparison of the company's net income to its stockholder's equity.O It is a measure of the company's ability to be profitable over the coming year.O It is a measure of the rate at which the company "turns over" its inventory.

Debt are a form of liabilities for the company, which it has to pay in future. Equity is the total…

Which of the following is true of a leverage ratio? O It is a measure of the extent to which a company uses debt compared to equity. O It is a measure of whether the company will have sufficient cash to pay its bills over the following year. It is a comparison of the company's net income to its stockholder's equity. O It is a measure of the company's ability to be profitable over the coming year. It is a measure of the rate at which the company "turns over" its inventory.

Which of the following is true of a leverage ratio? O It is a measure of the extent to which a company uses debt compared to equity. O It is a measure of whether the company will have sufficient cash to pay its bills over the following year. It is a comparison of the company's net income to its stockholder's equity. O It is a measure of the company's ability to be profitable over the coming year. It is a measure of the rate at which the company "turns over" its inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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