Vidyalelo
Commerce · Q887

Accounting

Graduate and Post Graduate · Commerce · question 887

Q887

Which one of the following statements is not correct:

A.
Net capital employed equals fixed assets
Answer
B.
Low sales in relation to fixed assets mean underutilisation of fixed assets
C.
Expenses ratios reflect the profit earning capacity of the concern
D.
The analysis for short term solvency of a company attempts to focus attention on the cash generation power of the company

Answer: Option A

Solution

Answer: Option A
No explanation is given for this question Let's Discuss on Board