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Author Question: Why would a high debt ratio be a red flag in a financial statement analysis? (Read 569 times)

yoroshambo

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on: Feb 19, 2020
Why would a high debt ratio be a red flag in a financial statement analysis?
◦ The company may be unable to pay its debts.
◦ The company is borrowing more than it is earning.
◦ The company is paying too much interest.
◦ Both A and B are reasons why it would be a red flag.
Financial Accounting ¦ Kemp, Waybright ¦ 5th Edition
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Marked as best answer by yoroshambo on Feb 19, 2020

elizabethrperez

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Reply #1 on: Feb 19, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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yoroshambo

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Reply 2 on: Feb 19, 2020
Great answer, keep it coming :)

aliotak

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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