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True or False: The debt-to-assets ratio indicates financing risk by computing the proportion of
total assets financed by debt.
Solution
The given statement is true.
The debt to assets ratio indicates the proportion of a company's assets that are being financed
with debt, rather than equity. The ratio is used to determine the financial risk of a business.

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True or False The debt-to-assets ratio indicates financing risk by .pdf

  • 1. True or False: The debt-to-assets ratio indicates financing risk by computing the proportion of total assets financed by debt. Solution The given statement is true. The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt, rather than equity. The ratio is used to determine the financial risk of a business.