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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

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