Question
Which of the following statements is
correct?Solution
• Receivables turnover ratio → A higher ratio is desirable as it indicates efficient collection of receivables. Hence, (A) is incorrect. • Net profit margin increase with constant sales/assets → This would improve ROI, not reduce it. Hence, (B) is incorrect. • Interest coverage ratio is calculated as EBIT ÷ Interest Expense. It is unaffected by the tax rate, so (C) is incorrect. • Debt-to-equity ratio → A lower ratio shows that the firm is less dependent on debt financing and relies more on equity. This reduces the risk of financial distress, making (D) correct.
Fill the blank with the most meaningful sentence as per the context of the passage.
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Complete the sentence with the appropriate word.
After examining the facts in the case, the judge used his _________ to grant bail to the accused.
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All the buildings that converged on the street were___________.Â
(A) similar
(B) compared
(C) identical   Â
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The ____________recruit was ready to join the Army and signed up the day he turned eighteen.
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