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calcrismore calcrismore
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A year ago
Which of the following is an accurate statement regarding a company's ability to meet its long-term debt obligations?

▸ If the debt-to-equity ratio is too high, it may indicate that the company has used up its borrowing capacity.

▸ If the debt-to-equity ratio is too high, it may mean that available leverage is not being used to the owners' benefit.

▸ The times interest earned ratio indicates if a company can make its principal and interest payments.

▸ The key ratios that are used to measure a long-term solvency are debt to equity, return on assets, and times interest earned.
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Auditing and Assurance Services

Auditing and Assurance Services


Edition: 17th
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eminemluvr87eminemluvr87
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A year ago
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calcrismore Author
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A year ago
This site is awesome
kater28
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Yesterday
Good timing, thanks!
mikeh209
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2 hours ago
Thanks
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