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Question

____________ of total assets to debt ratio indicates that assets have been mainly financed by owners funds and the long-term loans are adequately covered by assets.


A

Lower

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B

Higher

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C

Equal

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D

All of these

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Solution

The correct option is B

Higher


A higher value of the total assets to debt ratio indicates that assets have been mainly financed by owners funds and the long-term loans are adequately covered by assets.


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