Which of the following statements is the most reasonable conclusion from the given information below of ABC Company? Liabilities: P430,000 Industry average assets: P1,500,000 Equity: P415,000 Industry average liabilities: P630,000 ABC Company's debt ratio is above the industry average, which suggests it is using less debt to finance its assets than the (A average firm in the industry. ABC Company's debt ratio is below the industry average, which suggests it is using less debt to finance its assets than the (B average firm in the industry. ABC Company's debt ratio is below the industry average, which suggests it is using more debt to finance its assets than the average firm in the industry. ABC Company's debt ratio is above the industry average, which suggests it is using more debt to finance its assets than the (D average firm in the industry.

Which of the following statements is the most reasonable conclusion from the given information below of ABC Company? Liabilities: P430,000 Industry average assets: P1,500,000 Equity: P415,000 Industry average liabilities: P630,000 ABC Company's debt ratio is above the industry average, which suggests it is using less debt to finance its assets than the (A average firm in the industry. ABC Company's debt ratio is below the industry average, which suggests it is using less debt to finance its assets than the (B average firm in the industry. ABC Company's debt ratio is below the industry average, which suggests it is using more debt to finance its assets than the average firm in the industry. ABC Company's debt ratio is above the industry average, which suggests it is using more debt to finance its assets than the (D average firm in the industry.

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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