MC Qu. 95 Which of the following statements is false...
Which of the following statements is false with regard to the debt ratio?| It is of use to both internal and external users of accounting information. | |
 | A relatively high ratio is always desirable. |
| The dividing line for a high and low ratio varies from industry to industry. | |
| Many factors such as the company's age, stability, profitability, and cash flow influence the determination of what would be interpreted as a high versus a low ratio. | |
| The ratio might be used to help determine if a company is capable of increasing its income by obtaining further debt. |
