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QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio O C solvency ratio O D. None of the ans
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Answer #1

1) D

The debt to asset ratio is a LEVERAGE RATIO which indicates that the percentage of assets being financed by debt funds.The increase in this ratio will lead to financial risk for the company.

2) B

Free cash flows shows the efficiency of the company to generate cash .it helps to determine tejehe financial perfomance of the company. it heps the company to pay off creditors, dividend and other interest to shareholder.

3) B

The Securities and exchange commission (SEC) issues accounting standards for firms outside united states

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