Which of the Following Statements Is Correct

question 79

Multiple Choice

Which of the following statements is correct?

• A) If Company A has a higher debt ratio than 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 uses 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.

Understand the role of gender in personality development and societal roles.

Differentiate between various psychosomatic illnesses and their characteristics.

Grasp the significance of culture-bound syndromes and their relationship to ethnic identity.

Acknowledge the genetic and environmental influences on personality.

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Definitions:

Marginal Tax Rate

The percentage of each additional dollar of income that goes to the tax.

Regressive

A term used to describe a tax system in which the tax rate decreases as the taxpayer's income increases, placing a larger burden on lower-income earners.

Ability-to-Pay Principle

A taxation principle that argues taxes should be levied according to an individual's or entity's capability to bear the tax burden.

Income Taxes

Taxes levied by governments on individuals or corporations' income, where the tax rate may increase as the taxable amount increases.