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Which of the following statements is/are true with respect to debt management ratios.

Which of the following statements is/are true with respect to debt management ratios.

Which of the following statements is/are true with respect to debt management ratios?


I. They indicate what percentage of the organization’s assets are financed by creditors.
II. They are also called leverage ratios.
III. A higher percentage indicates that creditors have lesser claim over the assets of the organization than the owners.

[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]Both (I) and (II) above

Liam Smith 27-Dec-2017

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