Debt ratio of ryznak industries


Please assist with the given problem regarding debt ratio. Include references in the solution.

Problem: The debt ratio of Ryznak Industries, a Japanese corporation, is 62%. Why might this be difficult to compare to the debt ratio of a U.S. manufacturing corporation?

A) U.S. companies generally have debt ratios greater than 62%.

B) U.S. companies generally have debt ratios less than 62%.

C) Japanese financing preferences may be different from American preferences.

D) Japanese companies report assets and liabilities in yen, whereas U.S. companies report in dollars.

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Accounting Basics: Debt ratio of ryznak industries
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