Which one of the following statements is correct —

CS Executive · Cost and Management Accounting · PYQS · June 2016
Which one of the following statements is correct —
(A) Lower debt equity ratio means lower financial risk
(B) Increase in net profit ratio means increase in sales
(C) A higher receivable turnover is not desirable
(D) Interest coverage ratio depends upon tax rate.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Statement Analysis

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