The higher value of total assets in total assets to debt ratio __________.

favorable

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unfavorable

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No conclusion

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None of these

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Solution

The correct option is A
favorable

The higher value of total assets in total assets to debt ratio is favorable. This means that long term debts are lesser in comparison to long-term assets.

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It would be a good indicator for a firm if the total assets to debt ratio is ___________.

It establishes a relationship between total assets and total long-term debts. This ratio is ____________.

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