Business
Business, 04.09.2019 17:10, star030616

All of the following statements regarding the ratio of liabilities to owner’s equity are true except
(a) a ratio of 1 indicates that liabilities equal owner's equity.
(b) corporation can use this ratio but subtitute total stockholder's equity for total owner's equity.
(c) the higher this ratio, the better able a business is to withstand poor business conditions and pay creditors.
(d) the lower this ratio, the better able a business is to withstand poor business conditions and pay creditors.

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