Q1566
The Debt Equity ratio of a company for three consecutive years was as follows: Year Debt Equity Ratio 1989 39928 1990 49334 1991 62442 The aforesaid ratios show:
The Debt Equity ratio of a company for three consecutive years was as follows:
The aforesaid ratios show:
| Year | Debt Equity Ratio |
| 1989 | |
| 1990 | |
| 1991 |
A.
That the company's financial structure is sound
B.
That the company is capable of meeting its shrot-term liabilities
C.
That the interests of creditors are not safe in the company
AnswerD.
That the long-term liquidity of the company is improving from year to year
Answer: Option C
Solution
Answer: Option C
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