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Which of the Following Statements Is True Regarding the Relationship

Question 76

Multiple Choice

Which of the following statements is true regarding the relationship of the debt-to-assets ratio and the debt-to-equity ratio?


A) Debt to assets is usually greater than debt to equity.
B) Debt to assets is usually less than debt to equity
C) Debt to assets is usually equal to debt to equity.
D) There is no constant relationship between these two ratios.

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