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Commerce · Q454

Accounting

Graduate and Post Graduate · Commerce · question 454

Q454

Which one of the following statements is not true?

A.
Conversion of debentures into preference shares will decrease debt-equity ratio
B.
Long-term liabilities due for payment within a year should be treated as current liabilities
C.
Higher operating ratio indicates higher profits
Answer
D.
Cost of sales is a better numerator than sales while calculating stock turnover

Answer: Option C

Solution

Answer: Option C
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