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:

XY Pair

Refers to the male sex chromosomes in humans and most other mammals where XY denotes a male genotype.

Reciprocal Translocation

A genetic phenomenon where parts of two different chromosomes exchange places without changing the total amount of genetic material.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that are similar in shape, size, and genetic content but may carry different alleles.

Trisomy 21

A genetic disorder caused by the presence of an extra 21st chromosome, also known as Down syndrome.