Which of the Following Statements About the Capital Acquisitions Ratio

question 101

Multiple Choice

Which of the following statements about the capital acquisitions ratio is correct?

• A)A high ratio indicates less need for outside financing of property,plant and equipment.
• B)The ratio is computed by dividing cash flow from operating activities by the average net property,plant,and equipment.
• C)A low ratio may indicate a failure to update property,plant,and equipment,which can limit a company's ability to compete in the future.
• D)The ratio is comparable across industries.

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Definitions:

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