A high debt to asset level means your liquidity may be at risk.

Name: A high debt to asset level means your liquidity may be at risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high debt to asset level indicates that a significant portion of assets are financed by debt, which means that there is greater risk of insolvency or default in case of financial stress. This, in turn, can impact the ability of the business to meet its short-term obligations and may result in reduced liquidity.

A High Debt to Asset Level Means Your Liquidity May