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which of the following statements about debt management ratios is incorrect? at

ID: 2655310 • Letter: W

Question

which of the following statements about debt management ratios is incorrect? at here are 2 types of debt management ratios; capitalization and coverage, b capitalization ratios use balance sheet data to measure the relative amount of debt financing used, c coverage ratios use income statement to measure the extent to which earnings cover interest obligations, d the debt ratio is a capitalization ratio, while the debt to equity ratio is a coverage ratio, e the debt ratio is defined as total debt divided by total assets which of the following statements about debt management ratios is incorrect? at here are 2 types of debt management ratios; capitalization and coverage, b capitalization ratios use balance sheet data to measure the relative amount of debt financing used, c coverage ratios use income statement to measure the extent to which earnings cover interest obligations, d the debt ratio is a capitalization ratio, while the debt to equity ratio is a coverage ratio, e the debt ratio is defined as total debt divided by total assets which of the following statements about debt management ratios is incorrect? at here are 2 types of debt management ratios; capitalization and coverage, b capitalization ratios use balance sheet data to measure the relative amount of debt financing used, c coverage ratios use income statement to measure the extent to which earnings cover interest obligations, d the debt ratio is a capitalization ratio, while the debt to equity ratio is a coverage ratio, e the debt ratio is defined as total debt divided by total assets

Explanation / Answer

Answer: b capitalization ratios use balance sheet data to measure the relative amount of debt financing used.