Reference no: EM132943320

Problem 1: Which of the following is NOT true about the debt-to-total-assets ratio?

Select one:

a. A low debt-to-total-assets ratio indicates that the company is at a greater risk of being uanble to meet debt obligations

b. It measures how much of a company's assets are financed through total liabilities

c. The higher the ratio, the greater the difficulty the company has repaying its creditors

d. It is an indicator of a comnpany's financial leverage

Problem 2: Performing internal audits on long-term liabilities is an example of:

Select one:

a. Loan repayment

b. Budgeting activities

c. Internal controls

d. Financial statement analysis