Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A)If Company A has a higher debt ratio that Company B, then we can be sure that A will have a lower times- interest-earned ratio than B.
• B)Suppose two companies have identical operations in terms of sales, cost of goods sold, interest rate on debt, and assets.However, Company A used more debt than Company B; that is, Company A has a higher debt ratio.Under these conditions, we would expect B's profit margin to be higher than A's.
• C)The ROE of any company which is earning positive profits and which has a positive net worth (or common equity) must exceed the company's ROA.
• D)Statements a, b, and c are all true.
• E)Statements a, b, and c are all false.

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Definitions:

Religion

A system of beliefs, practices, and rituals related to the sacred, transcending the mundane to address existential questions and moral codes.

Tradition

The transmission of customs, beliefs, and cultural practices from generation to generation.

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A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Ethical Imperatives

Moral obligations or principles that guide individuals' actions in accordance with what is considered right or just.